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Payday Loans and bankruptcy

I am feeling guilty and losing sleep. I know I will be filing for bankruptcy within the month and I know that the payday loan I have had to keep getting over the past few months will be included in this, however this past week I knowingly got a payday loan from another company knowing I can`t possibly pay it back. What will happen when I claim bankruptcy? Have I committed fraud?

One Response to “Payday Loans and bankruptcy”

Barton Goth GCO Bankruptcy Trustees said...

First thing first, if you know that you are going to file for bankruptcy shortly stop using any source of credit immediately.

Second, make sure you disclose this to your Trustee. The trustee will find out shortly anyway as each creditor is required to provide 3 months of history to the Trustee automatically.

If you disclose this transaction to the Trustee you will be able to phrase things appropriately so that the creditor in question is less likely to oppose your discharge. the normal way of doing this is to repay the amount in question as part of the cost of the bankrutpcy.

For more details on this discuss it with a local trustee .