Can I include NEW pay day loans in my bankruptcy?

Can I include NEW pay day loans in my bankruptcy? – I found myself in the pay day loan web again after I filed for bankruptcy and now I can’t pay them back, can I include them in my bankruptcy?

Posted from: Ontario

One Response to “Can I include NEW pay day loans in my bankruptcy?”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

Claims provable in bankruptcy, i.e. your debts at the time of bankruptcy, are included in the bankruptcy. However, debts that you incurred after the date of your bankruptcy are not. You should be aware that Section 199 (b) of the Bankruptcy and Insolvency Act creates an offence should an undischarged bankrupt obtain credit to a total of $1,000.00 or more from any person or persons without informing them that they are an undischarged bankrupt. As well the bankruptcy process includes two mandatory counselling sessions, basically designed to help you budget your finances and avoid falling into the “pay day loan” vicious cycle. You may wish to talk to your trustee about options or additional counselling to resolve what appears to be a serious problem.