Online Info: File for Bankruptcy - 11 Bankruptcy Commandments - 10 of 11
10. Thou shalt not take “payday” loans, especially from internet sites.
Note: When you consider whether to file for bankruptcy and start online gathering information, after starting your research, feel free to call me, bankruptcy attorney Laura Buchanan at 323-686-5400 ext. 2 for more information. As of the date of this post, one cannot simply file for bankruptcy online. You need to file papers at the Court. If you use an attorney, they will file electronically for you.
Payday lenders are usually a last resort because they charge very high fees. They will often ask for post-dated checks, and the bankruptcy court likely will let the lender cash the check AFTER you file a bankruptcy, so you missed discharging that debt in your bankruptcy.
Internet payday lenders are even worse. Do not give your personal information – especially your bank account info – to a random website. If you take a loan, you must know exactly who the lender is and what address to use in order to notify them of a bankruptcy.
Under bankruptcy law, you may not be able to discharge a debt to a particular creditor, unless you give the court the address for the creditor, because the court sends a notice to your creditors at the addresses you provide to the court. If the court can't send a creditor a written notice of your bankruptcy, the court can't tell them officially that you filed bankruptcy. And if the court can’t tell them officially that you filed, and you can't even contact them, how can you stop them from trying to collect from you?
Don’t take these loans!
For the first Bankruptcy Commandment in this series of blog posts, click here.
For the second Bankruptcy Commandment in this series, click here.
For the third Bankruptcy Commandment in this series, click here.
For the fourth Bankruptcy Commandment in this series, click here.
For the fifth Bankruptcy Commandment in this series, click here.
For the sixth Bankruptcy Commandment in this series, click here.
For the seventh Bankruptcy Commandment in this series, click here.
For the eighth Bankruptcy Commandment in this series, click here.
For the ninth Bankruptcy Commandment in this series, click here.
This is the tenth Bankruptcy Commandment in this series.
For the eleventh Bankruptcy Commandment in this series, click here.
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