San Antonio Payday Loan Debt Attorney:
The payday loan is an extremely high-interest, short term loan that offers a very expensive solution to those who need cash until their next paycheck. To get a payday loan, a borrower typically goes into a payday loan check cashing store and writes a postdated check (typically for two weeks) for the amount borrowed plus the interest. If a borrower gets a payday loan of $200.00, they will write a postdated check for that amount plus some $60.00 interest, so the check will total $260.00. After the two week period, the borrower may pay the $260.00 in full or they have an option to extend the loan for another two weeks – for an additional $60.00 interest. Obviously, this sort of loan vastly depletes the borrower’s money as they get caught in the cycle of borrowing money paycheck after paycheck and paying extremely exorbitant interest rates.
Payday Loans Are Unsecured Debt and May Be Discharged in a Chapter 7 Bankruptcy Proceeding:
The good news is that because payday loans are unsecured debt, they are typically dischargeable in a Chapter 7 bankruptcy proceeding. In some circumstances, however, your payday loan debt may not be discharged if the loans were taken out within 60 to 90 days prior to filing. Another possible pitfall is the fact that payday loans renew automatically on a monthly basis if there is a remaining balance. Thus, even if the payday loan was acquired many months or even years ago, it may appear that the loan was recently acquired. However, the court is generally inclined to give the benefit of the doubt to the debtor. Speak to your bankruptcy attorney for specific information regarding whether your payday loan may be discharged in a Chapter 7 bankruptcy.
Payday Loans and Chapter 13 Bankruptcy:
A Chapter 13 bankruptcy will enable the debtor to repay their debt over a period of three to five years. A Chapter 13 bankruptcy, therefore, will include the payday loan debt in the payment plan because it is treated the same as any other unsecured debt. However, at the end of the three to five year period, in most cases all remaining unsecured debt is discharged by the court. Again, speak to your attorney to understand how this may apply to you.
Contact a San Antonio Payday Loan Debt Attorney for a Free Case Review:
Fears Natawaiti is a highly respected Texas bankruptcy law firm with offices in San Antonio, Dallas, Fort Worth, Austin and Houston. They offer a free consultation to anyone who is seeking a legitimate way to get their financial affairs in order again. You will have the opportunity to discuss your personal financial situation with an experienced, licensed bankruptcy attorney who will then assess your case and discuss your options with you. There is no fee for this consultation and there are no expectations involved. To arrange your complimentary consultation, call the San Antonio Fears Nachawati Law Firm at 866-259-3002.