QUESTION
Can the payday loan company file criminal charges to collect debt that is included in the bankruptcy?
Asked on Sep 14th, 2016 on Bankruptcy - California
More details to this question:
They said original debt was included in bankruptcy not the electronic check to obtain the payback for loan.
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Any attempt to collect the debt after the date of filing is prohibited, including electronic checks. It is not a criminal offense to bounce an electronic check generated by the creditor nor is it a criminal offense to bounce any type of check for future deposit. It is a criminal offense to write a check without any agreement that it will be cashed at a later date when you don't have the funds in the account.
Answered on Oct 12th, 2016 at 7:05 AM
I hear complaints like this about payday lenders all the time, but the reality is that only law enforcement can file a criminal complaint. Lenders can only file a report. In Nevada, law enforcement will not follow through to prosecute a payday loan. But it is a completely different story if you have put up a marker at a casino.
Answered on Oct 05th, 2016 at 6:17 PM
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That is just a tactic that use to scare people into paying the debt even though it was included in the bankruptcy. They have never once filed criminal charges. Besides, what is the crime?
Answered on Oct 05th, 2016 at 6:16 PM
No, they can not do that don't worry about that.
Answered on Oct 05th, 2016 at 4:15 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Not lawfully. Good Luck.
Answered on Oct 05th, 2016 at 4:15 AM
You are asking two different questions. If an underlying debt is included in the bankruptcy they CANNOT collect it, period. They can, however, within the context of your bankruptcy, claim the debt should not be discharged because when it was incurred the debtor had no intention of ever paying it back, that is, they knew they would file BK. To pursue this course of action would require the filing of an adversary action in the BK case by the creditor.
Answered on Oct 04th, 2016 at 6:01 PM