Comments on: Is my payday loan included in bankruptcy http://www.bankruptcy-canada.ca/bankruptcy/2008/01/payday-loans-2.html Personal Bankruptcy Canada Blog Fri, 10 Feb 2012 15:23:44 +0000 hourly 1 By: Ted Michalos, CA trustee http://www.bankruptcy-canada.ca/bankruptcy/2008/01/payday-loans-2.html#comment-17980 Ted Michalos, CA trustee Fri, 01 Feb 2008 11:03:06 +0000 http://www.bankruptcy-canada.ca/bankruptcy/2008/01/payday-loans-2.html#comment-17980 There's no polite way to say this - the payday loan places rely on the fact that most people are unsophisticated borrowers and don't know the law. Here's what everyone needs to know: 1) REGARDLESS of what your contract with the payday loan company they CANNOT garnishee your wages without a court order. YOu may sign a form saying they can deman payment from your employer, but your employer is not permitted to make that deduction from your pay without your consent at the time. Simply tell your employer you no longer consent to the deduction. 2) REGARDLESS of what the contract says, payday loans cannot exclude themselves from bankruptcy law. If your contract says that they can it's not worth the paper it is written on. If you file for bankrutpcy and have such a contract please give it to your trustee so your trustee may forward it to the proper authoriites... 3) If you renew or take out a payday loan after you file for bankruptcy there will be nothing your trustee can do to help you - it will be considered a new debt and will be excluded from your bankrutpcy. If you're using payday loans at all - STOP IT. Talk to a financila counselor or a trustee and get off that treadmill - there's no way you can afford to keep paying them back and then borrowing the money again... There’s no polite way to say this – the payday loan places rely on the fact that most people are unsophisticated borrowers and don’t know the law.

Here’s what everyone needs to know:

1) REGARDLESS of what your contract with the payday loan company they CANNOT garnishee your wages without a court order. YOu may sign a form saying they can deman payment from your employer, but your employer is not permitted to make that deduction from your pay without your consent at the time. Simply tell your employer you no longer consent to the deduction.

2) REGARDLESS of what the contract says, payday loans cannot exclude themselves from bankruptcy law. If your contract says that they can it’s not worth the paper it is written on. If you file for bankrutpcy and have such a contract please give it to your trustee so your trustee may forward it to the proper authoriites…

3) If you renew or take out a payday loan after you file for bankruptcy there will be nothing your trustee can do to help you – it will be considered a new debt and will be excluded from your bankrutpcy.

If you’re using payday loans at all – STOP IT. Talk to a financila counselor or a trustee and get off that treadmill – there’s no way you can afford to keep paying them back and then borrowing the money again…

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