Can I put payday loans in a Chapter 13 and is there a requirement for how old they are?

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Can I put payday loans in a Chapter 13 and is there a requirement for how old they are?

Asked on May 8, 2015 under Bankruptcy Law, Michigan

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Typically, a payday loan can be dischared in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, the payday lender will be paid the same as other unsecured creditors, which usually means they'll only be paid a portion of the debt.

That having been said, if you took out the loan within 90 days of filing, the creditor can claim that you had no intent on paying the full amount of the loan back (i.e. you had "fraudulent intent"). In such a case, the bankruptcy court may find you liable for full repayment.


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