How canI get out of payday loan debt?

UPDATED: Feb 22, 2012

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How canI get out of payday loan debt?

I am currently in the trap of of multiple payday loans because of the rolling fee’s I am unable to pay down the balances. What are my options?

Asked on February 22, 2012 under Bankruptcy Law, Indiana


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

Answered 11 years ago | Contributor

It would be advisable to consider filing bankruptcy.  A Chapter 7 bankruptcy is straight liquidation wihich eliminates your debts.  If you are eligible for Chapter 7, that would be your preferred option.  Eligibility for Chapter 7 is determined by income and other factors.  If you are not eligible for Chapter 7, you can file Chapter 13.  A Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors.  It would be advisable to speak with a bankruptcy attorney.  When filing bankruptcy, you will need to list all creditors.  The bankruptcy is effective upon filing with the bankruptcy court.  When the bankruptcy is filed with the court, the court sends notice to all creditors you have listed.  That is why it is important to list all creditors so that they have notice of the bankruptcy.

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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