Can Payday Loans Be Discharged In Bankruptcy?
Today I want to answer the question, I have
these payday loans and they’re killing me. Can I discharge those in bankruptcy? Well, the short answer to that question is
yes. Payday loans are fully dischargeable in bankruptcy. Even if they are being automatically deducted
from your paycheck or deducted from your bank accounts or being deducted based upon a debit
card, you can file bankruptcy, list them on the bankruptcy papers that you file with the
court. They’ll have 60 days from the date you meet
with the trustee to object to your bankruptcy case on the basis of fraud, which almost never
happens, and then, on the 61st day after you meet with the trustee, the court will issue
a discharge order, and you will be free from those payday loans. Of course, the instant you file the bankruptcy
case, the automatic stay of bankruptcy will prevent that payday loan creditor from taking
any action to collect on that debt, but the bankruptcy process will protect you from the
payday loans and will give you relief from those very expensive and onerous financial
obligations. My name is Ron Drescher. I’m an attorney practicing bankruptcy and
creditors’ rights, and, if you have a question about whether you can get out from under your
payday loans, please pick up the phone and call me. I would love to hear from you.