Can a payday loan be put in a bankruptcy?
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Can a payday loan be put in a bankruptcy?
Asked on May 4, 2012 under Bankruptcy Law, Florida
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The payday loan can be included in your bankruptcy. Depending on your income and other factors, you may be eligible for Chapter 7 bankruptcy. Chapter 7 is straight liquidation which eliminates your debts.
If you are not eligible for Chapter 7, you will need to file Chapter 13. A Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors.
If you took out a payday loan, knowing that you weren't going to repay it and were going to file bankruptcy, you may be liable for fraud.
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