Can a payday loan company still take money from your checking account after filing Chapter 13?

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Can a payday loan company still take money from your checking account after filing Chapter 13?

I was severely behind on some debt and my car had been repo’d. I filed for Chapter 13 about 2 weeks ago and my car was retured within a few days. However, I noticed recently that one of the loan companies was still drawing money from my checking account. Can they do this?

Asked on August 11, 2012 under Bankruptcy Law, Louisiana

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

You seemed to answered your own question.  They are doing it.  is it legal, that's another question.

Was the payday loan company properly listed on your schedules which were filed with the Court?  Was the address correct?  Have tou nptified ypur bsnk to dishonor future withdrawals from your account?  Have you called pay day and informed them of the bankruptcy filing?  Has notice been sent to creditors of the filing of the case?

If the answer to any of the questions is no, then do it.  A creditor may not attempt to collect a debt after they receive NOTICE of the case.  If they haven't received notice, then no foul. 

Do you have an attorney? if so, contact the attorney an explain the problem.  If not, then you will have to do the leg work.  Contact the creditor with your case # and date of filing.  Actual notice is sufficient for bankruptcy purposes.  Keep a log of who you spoke with and when.  Document the conversation.

You may be able to get the payments back if you properly exempted them out under 11 USC 522.

Good luck


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