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Pay-day Loans Can Be Eligible for Discharge in a Chapter 7 Bankruptcy

This is a quick reminder that most payday loans or cash advance loans can be discharged in Chapter 7 bankruptcy if they are not secured by an asset and if you qualify for Chapter 7 bankruptcy. Many pay-day loans have been considered as predatory lending due to the interest rates that pay-day loan companies charge. This is not to be mistaken with a cash advance from a credit card. Cash advances from credit cards can also be problematic if you have a credit card payment that is not manageable, but a pay-day loan is a different type of loan. A pay-day loan is one that is secured with proof of an upcoming payday, usually by a paystub. A pay-day loan basically advances you on your paycheck. Although the industry has been heavily regulated in recent years, many individuals may still be stuck with these loans at interest rates that are not manageable or affordable. A bankruptcy can completely wipe out this type of debt if you are dealing with it. It is considered an unsecured loan because it is not attached to any particular asset.

Bankruptcy Law Professionals offers free consultations to talk to you more about your debts. Whether you are dealing with a pay-day loan or any other type of debt, you can contact us and discuss your situation with our attorney for free. If you are in the San Bernardino County, Riverside County, Orange County, or Los Angeles, contact Bankruptcy Law Professionals at (855) 257 – 7671 to schedule an appointment with our bankruptcy attorneys to explore your options.

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