QUESTION
Why can’t I get an installment only a payday loan if my chapter 7 was just discharged?
Asked on Nov 17th, 2016 on Bankruptcy - Colorado
More details to this question:
I tried to take out an installment loan but the lenders told me according to the state I live in, I can only take out a loan up to 21 days. How long will this last?
3 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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There is nothing in the bankruptcy law which prevents debtors in Chapter 7 from taking out installment loans. It sounds like the lender is trying to trap you in an extremely high interest 21 day loan which you'll have to rollover with more fees.
Answered on Dec 23rd, 2016 at 6:53 AM
I personally have never encountered this rule. Google the rule.
Answered on Dec 21st, 2016 at 5:15 PM
Payday lending is a highly regulated business. Apparently in your state, payday lenders cannot make installment loans. So the answer is you will NEVER be able to take out a payday loan and make installment payments on it unless the legislature changes the law.
Answered on Dec 21st, 2016 at 5:15 PM