Wipe Out Payday Loans | Mount Vernon Bankruptcy Attorneys | Bankruptcy Lawyers in Washington State

Payday loan problems? Wipe out your Payday loans in a Washington State bankruptcy. Stop struggling. Talk to a Mount Vernon bankruptcy attorney now.

Pay day loans are considered general unsecured debt. They are part of the class of debt that is the lowest priority of debt in bankruptcy. Pay day loans are almost always discharged. You do not have to be behind on a payday loan for it to be discharged. Even if you have been sued and are in the middle of a garnishment for a payday loan, it can be discharged.

Even though a pay day loan is secured by a personal check, it is rare that a pay day loan company accuses someone who filed bankruptcy of fraud. However, if you take out any kind of loan in anticipation of filing bankruptcy, with the knowledge and intent that you will never pay it back, then that is fraud. If any creditor can prove fraud in a bankruptcy case, that debt can be removed for the discharge and you’ll have to pay it back.

Sometimes pay day loan companies will tell their customers that they cannot include the debt in bankruptcy. That is not true. As long as you borrowed the money in good faith but later figured out that you cannot pay the loan back, you should have no problems in bankruptcy court. You may have problems if you take out a pay day loan shortly before filing. If you have old payday loans that you’ve been forced to roll over or reduce to a payment plan, then the appearance of fraud is reduced.

You may want to put a stop payment on the pay day loan if you’ve decided to file bankruptcy. In some cases it makes sense to open a new bank account. That is something you should do before you file your case.

If you are having trouble getting out of the pay day loan cycle, you should contact a bankruptcy attorney for advice. It is better to know your options well before there is an emergency.