Payday loan and bankruptcy

Don't stress out too much---I know it is a stressful situation and hard to just put it aside. I am not a real expert at the pdls and what they constitute as fraud. However, don't panic as there are many, MANY regular posters on here that will no doubt be along shortly to offer their views. I do know that you can not be arrested or sent to jail for not paying pdls. Since you are already paying for a BK attorney, maybe you could get an answer from him?

If bankruptcy is the best option for you, then I doubt that you be unable to have the PDLs discharged. It would cost them too much money to try to fight such a small amount, and I seriously doubt you'd actually be prosecuted for fraud...I mean you referred to it as "our" business. The threat of arrest of is a common collection tactic of PDLs.

YES, pdls are dischargable through bankruptcy. They are considered unsecured debt. Since you have CTC, you signed a voluntary wage assignment, you need to revoke this in writing IMMEDIATELY and give a copy to your payroll dept. This company WILL attempt to enforce this, and some companies will allow it. They will take your entire paycheck in one lump sum if they do allow this and you do not revoke it. But yes, you can discharge pdls through a bankruptcy, pdls will tell you know, but your attorney knows better and so do the courts. It is an unsecured debt dishcargable.

You will have no problems in qualifying for bankruptcy. Your attorney will inform the lenders about your filing and show the papers. Hopefully, you won't get sued before the debts are discharged.

Make sure that you don't repeat the same mistakes done in the past. You need to quit your gambling habits and improve your future. It won't take a very long time to rebuild your credit from the beginning if you stay timely in your payments. After bankruptcy, open small accounts with some banks and pay on time. This will help in repairing the past damages.

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I am pretty sure that once you file these companies have to wait to see if you are discharged or not before pursuing any legal matter against you...

Once initial petition is filed,automatic stay kicks in until it is discharged or dismissed. Only way around that is for creditor to file with court objecting to the stay.

Even if they do get a judgement, you can put that in your bk, but I would file ASAP

You can discharge payday loans in bankruptcy. Just can't discharge student loans.

Has someone contacted you regarding your options in terms of debt consolidation? Have you tried to contact these companies to make payment arrangements yourself?

You may want to consider consolidation before you consider bankruptcy. I would only consider bankruptcy if I did not have any options. If you have options, don't do it. Besides, now the government in their almighty wisdom has made it more difficult to file bankruptcy until you have tried to work out an arrangement with your creditors. Thought I would let you know that.


Don't stress the whole gambling thing. You made a mistake and now you are trying to correct the mistake. Don't beat yourself up. We have all done foolish things to get to this point. But we are here to help you anyway we can.

The first step is admitting you made a mistake, which you did. If you can work things out other than filing bankruptcy, I would do that if I were you. For one, it will make you feel better knowing that you have paid back what you owed rather then not. Check into debt consolidation or something like that before you file. Use bankrupcy as a very very last resort. Take it from someone who has been there. It isn't fun and to be honest, it was more embarrassing than trying to work out agreeemnts. If it turns out that bankruptcy is the best option, then make sure you are honest and include everything with it. But talk to someone about arrangments first and see what you can work out and see what you can afford.

Hang in there though. Things will work out.

You are going to get both sides of bankruptcy here. Although 2nd band may have had a bad experience, I can tell you that from mine, it was the best thing I could've done for myself and my children. I understand when you say you don't qualify for debt consolidation or settlement programs due to the size of the debt. I can tell you that mine was well over $250,000 (medical alone for two disabled children), and a single mother's income isn't going to cut it in that situation. And perhaps you may also be faced with a high debt situation. Don't feel ashamed and don't let anybody make you feel ashamed because you had to file BK. Do what is best for you. Like i said, you will here both sides of the bk story. In the end, it is your decision, don't ever let anybody make you feel bad about it.

Ooops, that was me, thought I signed in. Also wanted to add that gambling addiction is just as serious as a drug addiction. Take it one step at a time and one day at a time. Good luck with whatever you decide to do.

Steeler. I so agree it has to be right for the person.. It is not a easy out sometimes it is the only way out. Not to be entered into lightly.. But do not ever feel bad or embaressed because you need to file.. Frankly what other people think should not be considered...
Take care of your family...

It was hard for us to do the bankruptcy. We did try work the a credit counseling service and was ending up having to pay more than what we were paying before, which was something we could not afford to do. Things just kept getting worse and worse for us. We tried working with some of the creditors ourselves and of course by that time, the CCS we used had really screwed us up and no one would work with us at that time. When we finially made the decision to file, we felt so ashamed and embarrassed and upset that it wasn't funny. It took us a little bit of time to pay off our attorney to file, but at least he did work with us with our creditors. When we went to court, I looked at all the other people there and even though I knew why they were all there, it was so embarrassing for us to sit there and then when it was our turn, I just wanted to crawl into a hole and hide. We filed CH7. Every since then we have been fighting because of that affecting our credit. Technically, looking at things as a whole, it probably was the best thing for us, but it was a very humbling experience. I have always been one that has tried to pay back or what I owe, (not more than I owe, just what I owe). I hated not being able do it and I guess that is why it bothered me so much filing.

I was just suggesting that one exhaust all avenues before taking that route because it is so major. But by all means, if that it what is best for someone, I would never ever condemn anyone for doing it. I have known several people that have filed, some for the right reasons and some for the wrong.

debtstinks ~ please, I hope that my experiences did not upset you. You need to do what is best for you and your family and that is what is important. You need to be able to have a life. If this is what is going to be best for you, then you should do it. You will have my support! Best wishes and again, hang in there!