|Discharge payday loans by filing for Chapter 7.|
Payday loans are short-term unsecured loans providing a cash advance to borrowers at very steep interest rates. Borrowers, in theory, dedicate the income coming from their next paycheck to this new debt.
Unfortunately, when borrowers cannot pay the loan back quickly, the consequences can be disastrous. The high interest rate compounds upon a missed payment and becomes completely unmanageable.
Borrowers may end up paying fees to roll the loan over, if possible. The fees may rack up beyond the cost of the borrowed amount itself and put the borrower in even worse financial shape. A payday loan for $100.00 might grow to a $1000.00 repayment very quickly.
Bankruptcy can be a good way to get rid of your payday loans. Payday loans are unsecured and may be relieved by filing for Chapter 7 bankruptcy. Chapter 13 bankruptcy also eliminates payday loan debt, for people who are behind on house or car payments, too.
Steven R. McDonald, a bankruptcy attorney located in Oak Creek and serving Franklin, St. Francis, Cudahy and the rest of the metro Milwaukee area, helps customers through difficult financial times. He can walk you through the complexities of Chapter 7 bankruptcy law and what it means for your financial future.
Filing for bankruptcy is an overwhelming and exhausting process if you tackle it on your own. Atty. McDonald can help you through it and get you back on track toward a brighter financial future.
Payday loans can be a vicious cycle. Break free & get a fresh start with help from an experienced bankruptcy attorney.
If you file for bankruptcy, you are required to include all debts including any installment loans.
Whether or not the loan will be discharged (cleared) depends whether the installment loan is classified as secured or unsecured debt.
An installment loan is any loan scheduled to be repaid over time with a set number of payments. Mortgage loans and car loans are types of secured installment loans (the loan is secured by the home or the car).
Installment loan can also refer to unsecured loans such as a personal loan from a bank. In general, unsecured loans can be discharged in bankruptcy.
Secured loans cannot be discharged through bankruptcy, though a bankruptcy attorney can help you select bankruptcy exemptions to protect your property. Additionally, filing for bankruptcy can completely discharge unsecured debt such as credit card bills, payday loans and medical debt, which can make it possible for you to continue making payments on secured loans.
Contact attorney Steve McDonald for a free bankruptcy consultation to learn more about your best options for debt relief.
Of course, the best way to avoid having to pay back exorbitant interest payments is to simply stay away from payday loans in the first place.
High-interest loans are not the only form of quick cash. Short-term loans from a credit union or a cash advance from your credit card provider may also result in very high interest payments on the advance.
Don’t take out another high interest loan. If you are past the point of no return and considering filing for bankruptcy, Steven R. McDonald, is here to help you through the process. His years of knowledge in Chapter 7 and Chapter 13 bankruptcy can guide you out of debt and provide you with a clean financial slate.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.Return to Related News