Hot Student Stories

Can you file for bankruptcy with a pay day loan?

Amanda Johnson

in Student Loans

1 answer
1 view

1 answer

Dana Keller on March 16, 2018

Can. The important thing to remember is that some of these internet payday lenders are not, necessarily, in the united States. Not to worry too much with US the law. In a normal bankruptcy process, they would be excluded from any further collection activity against you by the law. If they don't care about the law, nothing is to say that won't keep the harassment anyway. I don't necessarily consider bankruptcy, if payday loans are the only issue. Some states have made payday lending illegal, or at least to establish interest rate caps. The majority of payday lenders from the internet are not licensed in your state to make loans. The courts have decided that a pay day loan from the internet is considered to have taken place in the state where YOUR computer is located at the time of the loan, not where the lender is. Check with your attorney general office or consumer protection agency to find out more specific state laws relating to pay day loans. Legally, you can not collect from you. However, if you wrote a check in a central place, then you wrote a check. You can't file bankruptcy on that.

Add you answer