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Can Online Payday Loans Be Discharged in Bankruptcy?

Posted By Allmand Law Firm, PLLC || 10-Dec-2013


Online Payday Loans and Bankruptcy

Consumers who find themselves in a bind may consider getting a payday loan or cash advance against their next paycheck. There are local locations in which you may apply for a payday loan in person and get the cash you need right away to take care of important expenses. Then you have online lenders that simplify the process and help you get funds sooner without leaving your home. Such loans may qualify for elimination in bankruptcy, but there are things to consider when engaging in such borrowing online.

What You Need to Consider Before Getting an Online Payday Loan

Payday loan lenders are known for being loan sharks because they charge high interest on cash loans well over 100% at times. Because there are interest fees in borrowing that can make it difficult to pay it back when it is due, debtors may find themselves in a tight spot taking out more than one loan; trying to cover necessary expenses while trying to attempt to pay off another loan.

Keep an Eye on Your Personal Information

Consumers should be aware of online payday lenders they engage in business with. Some may take your personal information and share it with other lenders who will try to get you to take out a loan with them too. Some unethical lenders may not have a physical address or way for you to contact them if you decide to file bankruptcy. They may try to continue to collect from you even after you have filed your petition. Few even send emails trying to scare you into making payments by threatening to file legal action against you. Payday loans are considered a form of unsecured debt that can be discharged, but you should review concerns you have with a qualified bankruptcy attorney.

Have Questions About Payday Loans and Bankruptcy? Let us Know

If you have any questions or need assistance regarding payday loans and bankruptcy you can contact us here or set up a free consultation with one of our bankruptcy attorneys that would be happy to assist you.


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