Can a payday loan be put in a bankruptcy?

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Can a payday loan be put in a bankruptcy?

Asked on May 4, 2012 under Bankruptcy Law, Florida

Answers:

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

Answered 9 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.


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