How canI get out of payday loan debt?
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How canI get out of payday loan debt?
I am currently in the trap of of multiple payday loans because of the rolling fee’s I am unable to pay down the balances. What are my options?
Asked on February 22, 2012 under Bankruptcy Law, Indiana
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It would be advisable to consider filing bankruptcy. A Chapter 7 bankruptcy is straight liquidation wihich eliminates your debts. If you are eligible for Chapter 7, that would be your preferred option. Eligibility for Chapter 7 is determined by income and other factors. If you are not eligible for Chapter 7, you can file Chapter 13. A Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors. It would be advisable to speak with a bankruptcy attorney. When filing bankruptcy, you will need to list all creditors. The bankruptcy is effective upon filing with the bankruptcy court. When the bankruptcy is filed with the court, the court sends notice to all creditors you have listed. That is why it is important to list all creditors so that they have notice of the bankruptcy.
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