Can a payday loan be put in a bankruptcy?

UPDATED: May 4, 2012

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Can a payday loan be put in a bankruptcy?

Asked on May 4, 2012 under Bankruptcy Law, Florida


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The payday loan can be included in your bankruptcy.  Depending on your income and other factors, you may be eligible for Chapter 7 bankruptcy.  Chapter 7 is straight liquidation which eliminates your debts.

If you are not eligible for Chapter 7, you will need to file Chapter 13.  A Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors.

If you took out a payday loan, knowing that you weren't going to repay it and were going to file bankruptcy, you may be liable for fraud.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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