Should I file Chapter 7 Bankruptcy if I'm being harassed by payday loan for loans I can't afford to pay?

How much money in total do you owe to all creditors? What is your annual income?

Bankruptcy is a constitutional choice. "Can you file" - most likely. The important question is really "should you file"?

Not necessarily. Depends on your eligibility. Call the AG on hassement. State law regulates pay day loans as well as federal law.

Chapter 7 is certainly an option. You should schedule a consultation with a BK attorney.

Only file bankruptcy if you have to. You have not indicated how much you owe. Since a bankruptcy shows on your credit report for ten years.

A Chapter 7 bankruptcy will discharge payday loans. Payday loans usually come with onerous interest terms that are difficult to pay back so a Chapter 7 is a good way to wipe out such loans.

Filing bankruptcy is certainly one option. The answer to your question depends upon a more complete review of your overall financial picture, including your income and your other debts. You meet one of the criteria for bankruptcy, which is that you cannot meet all of your current obligations. One thing for sure. Don't let the bill collecting bullies set your financial priorities. Rent, food and medical care, not to mention insurance and gasoline, come before payday loans and credit cards. Take care of yourself and your family first. Pay debts second. If you can't do both, bankruptcy is certainly one alternative to consider.

A Chapter 7 Bankruptcy would eliminate your obligation to pay the loan. That doesn't mean that it is what you should do. You can only get a discharge in a Chapter 7 bankruptcy every 8 years. If the situation that caused you to need the payday loans in the first place will persist, then you shouldn't use it yet. People often phrase the idea if filing by saying that they want to file bankruptcy on a particular debt - "I want to file bankruptcy on my Visa." - but you can't really do that. When you file bankruptcy everything you own and owe, along with all of your past financial transactions gets pulled into the bankruptcy. While this has very little impact on most Debtor's in some case in can be damaging. Have you paid back any money you owed to any friends or family in the last year? Because the Bankruptcy trustee has the power to take that money back from them. That is just one complication that could occur in a bankruptcy. Also, it costs a fair amount of money to file for bankruptcy. I charge between $400 - $700 for a filing, plus $306 for the filing fee and the costs for the Prefiling and Postfiling Certificates that are needed. If the payday loans are for less than the amount for filing (and there isn't a significant amount of other debt) then you don't come out any better. It is a big deal and should be treated that way. That being said - a creditors legal remedy against you isn't to harass you; it is to sue you for Breach of Contract. If you are in California you can ask you creditor in writing to stop contacting they must. (With certain limited exceptions for statements and requests mailed to you.) If they do not then you can gain rights to sue them. You can do it yourself, look up the Rosenthal Fair Debt Collection Practices Act, but you can find an attorney that would write your creditors for significantly less than a bankruptcy filing. That being said, if you have more than this one debt a bankruptcy filing will eliminate most if not all of it and set your credit on the road to recovery. Every month that outstanding debts are rewritten to a credit report is one more month before it will improve.

Chapter 7 BK would potentially help you to eliminate the debts you owe to the payday company. Following a Chapter 7 discharge, you would no longer owe this money.

Yes. You may have to make payments on the payday loans, but this will give you some time. The other option is to try to make an agreement with them where you pay a certain amount down and then payments on the rest becuase it may not be cost effective to file for a bankruptcy unless you have other bills.

File chapter 7, assuming you qualify, and eliminate your obligation to pay the payday loan?assuming the loan qualifies to be discharged. Oftentimes debtors are surprised to learn that payday loans can be discharged.

Anytime you are in a situation where you are having difficulty meeting your monthly obligations it is a great time to take advantage of a free consultation and seek out a bankruptcy attorney. There may be other options as well but a great first place to start is an attorney.

What you describe is the very reason bankruptcy exist.

If you have loans that you cannot pay, you may be eligible to obtain relief under the Bankruptcy Code. You should consult with an attorney to evaluate your individual situation in full to see if bankruptcy is the appropriate solution for you. You will want to consider how much debt you have in general, your income and expenses, and your assets, among other factors.

It depends upon your finances and other debt, but bankruptcy is one way to stop the harassing collection calls.

When eligible, file chapter 7 to discharge all unsecured debt that you are unable to pay in order to get a fresh start. But the decision to file bankruptcy is best made to address all debts rather than just one. Discuss the timing of the bankruptcy filing with an attorney in order to render the greatest number of existing debts dischargeable. Payday loans are one type of unsecured debt that is often discharged in Chapter 7.