Payday loans in Illinois have interest rates up to 400%. Unbelievable but true.
You need $500 for something real fast. Many Pay Day Loan companies have you give them a post-date check.
You pay it in a week or so it’s OK. But when you can’t then nightmare begins.
Repaying a $500 loan over a year that will be $172.12 per month. You pay a total of $2,065.44.
If you can’t pay at all the calculation after one year is incredible.
WHAT ARE THE TRAPS, WHAT ARE THE GOOD OPTIONS, AND, BUSTING THE MYTHS AND LIES ABOUT PAY DAY LOAN?
People borrow small amounts of money. When they can’t immediately repay it they soon find they owe thousands of dollars.
The reality: when you can’t pay back the loan right away you are trapped in a payday nightmare. Once trapped it hard and painful to get out.
You are an immediate candidate for either a Chapter 7 or Chapter 13 bankruptcy if you are:
- Can’t repay right away; or
- Refinancing the loan many times; or
- Using 2 or more Payday Loan companies; or
- Using Payday loan many times per year.
MYTHS AND LIES ABOUT PAYDAY LOANS
- Many lenders and collectors say you can’t file Bankruptcy on their loans: Yes you can.
- There are many complaints about threats of Arrest Warrants and Criminal action. You cannot be arrested for borrowing money and being unable to pay. It is a scare tactic. Don’t fall for it. Threat of criminal action is a violation for the Fair Debt Collection Practices Act.
- Are you paying by automatic deduction? You can stop it. They may tell you can’t. But, you can.
- That if you file a bankruptcy within 70 days of borrowing money from a Payday Loan it will not be discharged. False: the 70 day period only applies to open ended loans (like credit cards) of $950 for more.
- Pay Day Loans are well regulated. The Trump Admiration gutted Payday loan regulation.
PAYDAY LOANS IN BANKRUPTCY
- Robert J. Adams & Associates have helped thousands of people with Payday loans. We should be able to help you too.
- You can file bankruptcy even if you got a loan within 70 days. Collectors say you can’t. They are wrong. The only rule is that you intended to repay.
- The only real basis of fighting a Bankruptcy is if a credit can prove you never intended to repay the loan. This is very difficult. Our clients have always intended to repay their loans but problems prevented them from doing so.
- Postdated checks. Some lenders will cash a check after the filing. This is a violation of the automatic stay and can subject them to penalties. We are aggressive on this issue.
WHY BANKRUPTCY MAY BE THE GREAT OPTION FOR YOU
Bankruptcy all collections stop. Creditors are to stop taking your or your property. Garnishments stop. Automatic deductions from your bank stop.
PAYDAY LOANS ARE A SYMPTOM. DO YOU HAVE A LOT OF OTHER DEBTS?
Chapter 7 can eliminate all your debts. Or, Chapter 13 can make debt payments fit your budget.
You should not allow your car or your house payment to be held up by a payday lender trying to take your money.
Disclaimer: Blogs on legal matters are for information purposes only and is not to be construed as legal advice.
For more information on Pay Day Loans call today.