Payday loans in bankruptcy go hand in hand. Payday lenders are some of the most predatory types of loans that people take out. They usually come with the highest possible interest rates. The worst thing about payday loans is that they tend to be used by the poorest of us and that’s who gets hurt the most. Recent legislation attempts to require more disclosure from payday loan companies in an effort to make them more transparent.
Forgiving Payday Loans in Bankruptcy
Payday loans or payday advance loans can be discharged in your bankruptcy. Generally, a payday loan or cash advance is considered an unsecured loan and as an unsecured loan is forgiven in chapter 7 Bankruptcy. Through aggressive collection tactics the Payday loan firms in Oklahoma might tell you that the loan isn’t forgiven but this just isn’t true.
Can I go to Jail For Not Paying Payday Loans
Another harsh collection tactic that payday loan companies in Tulsa do is to tell you that if you don’t pay them you’ll get reported to the Police and taken to jail. Its unfortunate but this happens more often them many people imagine. The unscrupulous lender will tell that payday loans in bankruptcy are not allowed and illegal. To answer the question you will not be taken to jail for not paying the loan. A payday loan in bankruptcy is forgiven just like any other unsecured debt.
Payday Loans Secured by Personal property
Sometimes cash advance firms in Oklahoma require that you secure the loan with certain personal property or with post dated checks. If this is the case the loan loan may be considered to be secured and if so you may have to sign reaffirmation agreement. But, be careful some of the cash advance companies will attempt to secure the loan with exempt assets. An example of this is security in your TV or computer or personal property like that. If this is the case your Tulsa Oklahoma Bankruptcy attorney will review the security agreement and determine if it is valid. If not valid the security agreement is set aside and you keep the personal property.