Can You Get Rid of Your Payday Loan Debt by Filing Bankruptcy?

Instant loans have a peculiarity of piling up on you and a question everyone who uses payday loans once in a while probably asked themselves is what happens if you can’t pay out your loan on time. The situation gets even worse if you have several loans from different agencies you cannot afford to pay back.

Bankruptcy

Since it’s a really hot topic and a very important issue for many payday loan users, this article features one smart method, as advised by lawyers, which can help you to do away with your payday loan debt.

According to the United States tax legislation, each person who has a bank account and pays taxes is entitled to filing for bankruptcy if they cannot affort to pay a certain amount of debt back. It’s a reasonably safe and easy way of blotting out your debt, without risks or heavy charges. Find out how to set yourself free from a debt burden in a matter of just weeks following these simple steps and filing bankruptcy.

Know your rights

Each state has its own twist on the amount of debt one needs to run up to be able to file for bankruptcy. If you still have no idea of what that amount is in your state, it’s the right time to check.

Remember that there are different kind of debt and by filing for bankruptcy all of the debt you have — payday loan, credit card, conventional bank loan, or any other unsecured debt — will be wiped out.

Mind the timing

The contracts you sign upon taking out a payday loan specify that at the time when you get the loan you must be aware and be sure that you will be able to pay it back.

Just taking out dozens of loans and then filing for bankruptcy would be too easy, wouldn’t it? Payday lenders will carry out a check over your account to make certain that everything was right at the time you took out your loan.

Be prepared to wait for at least three months after the moment you got your loan so that the debt piles up and there are no questions about your solvency anymore.

Find a bankruptcy professional

This will probably cost you a penny, but it is definitely worth it. An experienced bankruptcy lawyer will take a careful look at your credit history, bank accounts, and overall capacity to pay debt to ensure for the cheapest, stress-free, and smooth transition to becoming a debt-free person once again.

Get a new bank account

If your payday lender finds out that you were going to file for bankruptcy and you have a certain amount of debt, they will probably try to withdraw the money you owe them from your bank account. Unfortunately, they are vested with such right.

That’s why as soon as possible after you hooked up with the lawyer you need to open another bank account with a different bank and transfer all money you had on it to your new account.

Follow the instructions

Put all your trust in your lawyer and his experience and be ready to set out on a month-long journey full of paperwork, moving around your city and state, and fighting for your rights.