Ohio Bankruptcy, Dayton Bankruptcy
bankruptcy attorney in Dayton Ohio

File Bankruptcy on Payday Loans

How to
Escape
Payday Loan Hell

When money’s tight, it is sometimes tempting to resort to pay loans to make ends meet.

Sometimes this works the way you want it to, but all too frequently I see people fall into a trap that is nearly impossible to escape.

While everybody believes that the payday loan or cash advance they may take out will be a one-time event, it frequently turns into a cycle that spirals out of control – it gets worse and worse until one payday loan turns into two, and then three – and I’ve seen people with as many as 16 different payday loans.

I had one client who had to take off work every other Friday simply to go from one payday loan lender to the next – renewing the loans over and over in order to keep the cash flowing.

Finally, she walked out of a loan office looking pretty sad, and a total stranger walked up to her and asked her if it was payday loans getting her down.

She looked at him and nodded her head.

The man said to her, “You need to go see Rick West, those payday loans are dischargeable in bankruptcy. He got rid of mine and maybe he can help you too.”

And so she did, and we were able to get her out of her payday loan cycle.

Most loans are dischargeable in bankruptcy,

What was I thinking?
How am I going to pay this back?
Now – I have a worse problem!

In the nearly 30 years that I have been helping consumers wipe out their debt, keep their property, and rebuild their credit, I’ve never seen a more difficult economic situation than the one we have now.

Everyday, I talk to someone who has a payday loan problem.

And everyday, I help them wipe out the payday loan keep their property and help them to rebuild their credit.

If you are in the payday loan trap – that generally means that you’ve got other serious financial problems.

You are probably drowning in debt, stressed out and losing sleep, wondering how to get out of the payday loan nightmare you are in.

If this is your situation, then you need help, and you need it now.

If you can afford to, forego all other payments – even let your house get behind a bit, and pay off the payday loan.

If you can put it on a credit card, do it. After all, which is worse, 125% – 300% interest, even %1,200 interest, or whatever the (probably high – but not that high) interest rate might be on the credit card?

Payday loans

A Tempting Trap…
Sometimes Fatal
To your Finances

Don’t let your car get behind, or your rent. You don’t want to have the car repossessed or get evicted.

Seldom, but I do see it OCCASIONALLY, the payday lenders will accept a debt management type of plan. You would have to talk to the payday lender and see. This usually doesn’t work very well.

You can move the debt from the worst creditor of all – the payday loan lender, to one that is bad, but not as bad, like the finance companies, Eagle Loan, Wells Fargo, Household Finance, and the like.

Skipping payments on other credit cards will free up money to pay off the payday loan, but this “solution” creates different problems as well.

Missed payments will hurt your credit seriously. But, that may not be your biggest worry right now. Besides, there are ways to improve your credit – you need to solve the more serious payday loan problem first.

Payday lenders DO sue, even though many of them claim to have a code of conduct that says they will not sue for non-payment. I see these lawsuits all the time.

And, you might have noticed part of the fine print on the loan papers you signed when you got the loan that you would not file bankruptcy on it.

Instant Cash
Perpetual Payments
Unsolvable Problems

Guess what? Federal law is very clear. You cannot, repeat, cannot waive your right to file bankruptcy like this. It’s just not possible – not enforceable – and I can tell you for a 100% dead certain fact that I have discharged probably hundreds of thousands of dollars in payday loans. There is no way they can prevent you from discharging your payday loans in bankruptcy. But, they want you to believe otherwise. Don’t fall for it.

In the nearly 30 years that I have been helping people solve their payday loan problems, I’ve learned that it’s normally not the only debt problem you have. Normally there are other debts, medical bills, credit cards, cars, etc.

Payday loans are usually a symptom of a bigger problem. Getting a payday loan means that you are probably behind, or soon will be, on your other bills. In this case, you need a comprehensive approach to all your bills. So you can solve the entire financial problem once and for all. Part of the solution is fixing your credit.

Most people think that if they file for bankruptcy, they either can’t discharge payday loans or they will forever have bad credit. Happily, neither of these are the truth.

My clients receive credit scores of between 650 and 700 in as little as one year after their bankruptcy is over. Credit is easy and quick to rebuild after bankruptcy, if you know how.
Contact my office today for more information. You’ll be glad you did.
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