Payday loans are loans made to borrowers who need quick and easy money and who do not have savings or other credit options. Payday loans should be the last resort for borrowers who have an immediate and temporary financial need such as a medical bill or car repair. Payday loans should, however, be paid back as soon as possible to avoid additional fees and finance charges.
Can I discharge my payday loans and medical bills with Chapter 7 bankruptcy?
When deciding whether or not to file Chapter 7 or Chapter 13 bankruptcies there are several considerations. The first is whether or not you will qualify for Chapter 7 bankruptcy. Unfortunately, bankruptcy law changes have made it more difficult to file Chapter 7, and many debtors will now be required to file Chapter 13 and repay a portion of their debt over a 3 or 5 year repayment plan. Recently on our bankruptcy forum a user asked, “Can I discharge my payday loans and medical bills with Chapter 7 bankruptcy?”
Did you know that even after your home is sold at auction or by the lender you could still be on the hook for money owed on your loan? This debt is called a deficiency, and it occurs if the amount you owed the lender is more than the foreclosure sale price.
It’s not unusual for some debtors to ignore bills and phone calls from lenders, and some borrowers do not even know how much they owe or to whom. But what do you do when you are ready to tackle the problem? How do you identify all of your consumer debts? Recently on our bankruptcy forum a user asked, “I am considering filing Chapter 7 bankruptcy, but I am embarrassed to admit I am not sure I can identify all of my consumer debts and the amount owed. How do I get started?”
Many people decide to file bankruptcy without fully understanding what it will and will not do for them. They also do not consider the limitations bankruptcy will place on their ability to make large purchases, at least for a specific time period. Recently on our bankruptcy forum a user asked, “I am considering buying a house. Will bankruptcy help me?”
Unfortunately, if you are considering filing bankruptcy you are most likely already in a very precarious financial position. In fact, it’s likely you have thousands of dollars in unsecured debts such as credit cards and medical bills. You may even have stopped paying your mortgage or had your car repossessed. The last thing you need is to pay thousands of dollars to file bankruptcy to get yourself out of debt. Recently on our bankruptcy forum a user asked, “Is filing bankruptcy free? If not, what can I do to save money?”
According to the Federal Reserve statistics, the average US household credit card debt stands at $15,611, counting only those households carrying debt. If all households are considered, even those who do not normally carry debt, the amount drops to an average of $7,283. So if you have credit card debt you are not alone. You are among millions of Americans who have had to rely on credit cards to purchase daily necessities.
Filing bankruptcy can be complicated, especially if you are not familiar with bankruptcy laws. Recently on our bankruptcy forum a user asked what they needed to do to get the bankruptcy process started?