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Payday Loans

Discuss the legalities of Bankruptcy Law

Payday Loans

Postby Sammy » Fri Nov 25, 2016 4:32 pm

I am in trouble with too much payday loan debt.  As of now I am current on everything,(approximately $2500 in payday loans, and a $200 signature loan,) but I am not going to be able to cover the interest on it all the next time they come due, forget about paying down any principal.  I have checked with a lot of companies that advertise help in getting out of debt, but they either can't help until the debts are in collection, require more than $10,000 of debt, or don't serve residents of Kansas, my home state.  A local bankruptcy attorney has advised that since my income is from social security disability, my "wages" cannot be garnished, so I should just let the loans go into default, and save to pay them off as I can.  I have read online that I should close my bank account so as not to incur a lot of bounced check charges, and open a new one.  I happened to already have a second checking account, and have even changed the direct deposit of my disability check to that account.  I'd like to know if this sounds like the right approach, given my situation.  Here is an added concern: I live in Kansas City, Kansas, and most of the payday loans are from storefront companies here.  However three of the payday loans and the signature loan are from storefronts on the Missouri side.  I don't have any online loans.  My bank account is in Missouri, too.  I understand that Missouri law allows for criminal prosecution for payday loan checks that are returned marked "closed account."  How would you suggest I proceed?  The first payment on the signature loan is due ten days from today.  The checks to most of the payday places are for the first of August, and have been bought back and rewritten several times.  A "free consultation" lawyer in Missouri says she has never seen criminal prosecution for a payday loan in such circumstances; the bad check division of the county prosecutors office in Missouri wouldn't give me any information. I hope you can help me decide what to do.  I already have terrible credit, so that is not a major consideration.  Staying out of jail is.
Sammy
 
Posts: 41
Joined: Mon Feb 24, 2014 9:34 am

Payday Loans

Postby Dallas » Sun Nov 27, 2016 1:39 am

I am in trouble with too much payday loan debt.  As of now I am current on everything,(approximately $2500 in payday loans, and a $200 signature loan,) but I am not going to be able to cover the interest on it all the next time they come due, forget about paying down any principal.  I have checked with a lot of companies that advertise help in getting out of debt, but they either can't help until the debts are in collection, require more than $10,000 of debt, or don't serve residents of Kansas, my home state.  A local bankruptcy attorney has advised that since my income is from social security disability, my "wages" cannot be garnished, so I should just let the loans go into default, and save to pay them off as I can.  I have read online that I should close my bank account so as not to incur a lot of bounced check charges, and open a new one.  I happened to already have a second checking account, and have even changed the direct deposit of my disability check to that account.  I'd like to know if this sounds like the right approach, given my situation.  Here is an added concern: I live in Kansas City, Kansas, and most of the payday loans are from storefront companies here.  However three of the payday loans and the signature loan are from storefronts on the Missouri side.  I don't have any online loans.  My bank account is in Missouri, too.  I understand that Missouri law allows for criminal prosecution for payday loan checks that are returned marked "closed account."  How would you suggest I proceed?  The first payment on the signature loan is due ten days from today.  The checks to most of the payday places are for the first of August, and have been bought back and rewritten several times.  A "free consultation" lawyer in Missouri says she has never seen criminal prosecution for a payday loan in such circumstances; the bad check division of the county prosecutors office in Missouri wouldn't give me any information. I hope you can help me decide what to do.  I already have terrible credit, so that is not a major consideration.  Staying out of jail is.
Dallas
 
Posts: 46
Joined: Sun Feb 02, 2014 5:11 am

Payday Loans

Postby Myung-Dae » Fri Dec 02, 2016 6:34 am

They can't get to your disability or pension checks. Don't close any bank accounts and keep just a little bit in them. Five or 10 bucks and that is all. Better to have the bank close them than you close them. No, the law probably won't come after you for anything to do with payday loans but there is no way to guarantee that they won't. It is just highly unlikely that the law would come after you for any of that. Of course they will be likely to try to sue you for the debt but even if they do get a judgment they can't come after you for it. Other than that there isn't a whole lot I can tell you at this time.  
Myung-Dae
 
Posts: 42
Joined: Fri Feb 07, 2014 3:38 pm


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