Payday Loans Discharged in Bankruptcy - Getting a New Start

Ok, you are down and out and realize that there is no way you can pay all your debts. It's time to discuss about filing for a bankruptcy discharge. Filing for bankruptcy can set you free from all your loan obligations.

And yes, payday loans discharged in bankruptcy mean freedom from your lenders. There is of course the issue of WHEN you availed of your emergency payday loans.

As a rule, any emergency pay day loan that you take the date after filing for bankruptcy is NOT covered by the proceedings so you are still liable for paying such payday loans.

Payday Loans Discharged in Bankruptcy - The Basics

Check the bankruptcy procedure in your state as this varies from one location to another. Further, bankruptcy rules and proceedings can get complicated so do consider asking for help from an attorney. For starters, know that you can file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is when you file for a complete discharge of all your payday loans and other debts from all your creditors.

You will have to file several bankruptcy forms proving inability to pay and a trustee will be assigned to your case.

Chapter 13 bankruptcy is when you file a repayment plan indicating how and how long it will take you to settle your payday loans and other debts. People with secured debts below $871,550 and unsecured debts below $269,250 can file for Chapter 13 bankruptcy.

A trustee will be assigned to look at your case and an initial meeting with your creditors, (including payday loans lenders) will be set.

Assuming none of your creditors disagree with your payment plan, a hearing is set where a judge will decide to grant or deny your bankruptcy repayment plan.