Eliminate Pay Day Loans

Knowledgeable Chapter 7 & 13 bankruptcy lawyers in Everett, WA serving Snohomish County.

It is easy to get caught in the pay day loan cycle. If you find that you are consistently rolling over pay day loans and have other significant debt, it is a major warning sign that you may have to file bankruptcy.

Getting rid of your pay day loans with bankruptcy in Washington State.

It is a common misconception that pay day loans are not discharged in bankruptcy filed in Snohomish County. Perhaps this is because pay day loans are based on a check that is written for the debtor’s pay day when the pay day loan company can cash it. Pay day loan companies themselves make the claim that, because they are “bad checks”, the loans are based on fraud and can not be discharged.

First of all, they are not “bad checks” as in the situation where you write a check for goods or services knowing that you have no money in the account or the account is closed. When you write a pay day loan check, the whole idea is that you do not have the money to cover it when you write it.

Secondly, a pay day loan company, like many other creditors, has to file a fraud case in bankruptcy court to except a loan from discharge. They have to prove you did not intend to ever pay the loan back. It is fairly difficult to prove fraud and the amounts usually involved in pay day loans are not worth filing a fraud case. The bottom line is that pay day loans are almost always discharged in bankruptcy.

If you have outstanding pay day loans and decided to file bankruptcy in WA, you may want to close the bank account the check is drawn on. You can put a stop payment on a pay day loan but that takes time, doesn’t always work and the bank will charge you a fee. In general, it is a good idea to prepare yourself well before you file your case.

Talk to an Everett bankruptcy lawyer from our team – your first consultation is FREE!

Talking with our experienced Chapter 7 & 13 bankruptcy lawyers in Everett, WA about all the necessary preparations is an important first step. Let us help you take it today!

(425) 249-7156