Can a payday loan company persue legal action if a debt was discharged?

Approximately 6 years ago I received a payday loan online but when the company tried to debit my account, the funds were unavailable. A year later I filed bankruptcy and the debt was discharged. Now, 5 years later, the company is threatening to ftake me to court for a “bad check” because they were unable to debit my account.

Asked on July 3, 2012 under Bankruptcy Law, Missouri


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the debt that you owe the pay day company is more than four years (4) years old and no lawsuit has been filed against you then most likely the claim would be time barred under your state's statute of limitations.

If the pay day company was listed as a creditor on your bankruptcy schedule and you received a discharge of your debts, the pay day company's claim against you would be precluded due to your bankruptcy discharge.

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