Bankruptcy Attorney | Payday Loans and Bankruptcy

Bankruptcy Attorney  |  Clients with payday loans often say. “The payday loan place said I can’t file bankruptcy on them!” Well, like many other “truths” told by collectors to people considering bankruptcy, that’s just not true. You can discharge payday loans in bankruptcy. If you take out a payday loan and you aren’t able to pay it back, the debt is still dischargeable. If you owe money to a payday lender, then that debt is treated like any other unsecured debt – a debt not backed by collateral – in your bankruptcy. It can be included in a Chapter 7 for complete discharge without making payments on it.

Your payday loan lender may challenge your decision to file for bankruptcy (at least verbally), but these challenges are usually unsuccessful. I’ve found over the last 15 or so years of bankruptcy practice that many people try to use payday lenders as a stopgap to filing bankruptcy. That is to say that they feel bankruptcy is such a bad thing that they deal with the sharks in order to avoid bankruptcy. Almost always what happens is that the cause of the person’s financial bind is not addressed, and the person winds up filing bankruptcy anyway. I have found over the years clients who utilize payday loans create an additional and large amount of unnecessary stress.

If you’re having to use the “services” of a payday lender, give us a call today to see if that’s your best move. I think you’ll find that it’s not.


Our office can assist you in determining whether bankruptcy is the right choice for you, and which chapter under the Bankruptcy Code would provide you with the most relief.  To schedule a free consultation with a knowledgeable Bakersfield bankruptcy attorney about filing a Chapter 7 bankruptcy in Kern County, please call our office today at 661-888-4335 .