Payday Loans in Bankruptcy

Some banks have recently announced that they are essentially entering the payday loan business. These loans have traditionally led to high costs and abuses greatly jeopardizing the well being of consumers. It may be true that an employee desperately needs immediate funds and an advance on his or her paycheck might be needed for the rent, utility bill, or other necessity. But payday loans have high fees and lead to a need for a loan on each additional check creating a never-ending cycle of high fees and inability to catch up.

Payday loan companies are often the nastiest and toughest trying to call and collect when the loans are not repaid. They often lie threatening criminal prosecution for a bad check. But the checks they hold are post dated; the debt is based on a promise to pay. There is no current exchange of goods and services for a current check.

Payday loans can be discharged in a Fort Lauderdale bankruptcy like any other debt.

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