Pay day loan payoff before filing

[Leesa926]

I am planning on filing Chapter 7. I also am having trouble this month making payments for necessary bills. I intended to take a payday loan out next week that would be due by end of the month. I intend to pay it off before filing. Will that be an issue? I keep hearing about he presumptive issues with debt before filing but this would be paid before I file.

Thnanks

[leonel9]

A few questions:
When do you plan on filing?
How much is the loan?
How many days prior to filing will the payment be made?

[Leesa926]

The loan would be $500. it's only for about 2-3 weeks.

I have my retainer appt next week so hoping to file in a month or so. it would probably be paid days before.

I'm looking for ways not to take it out. it doesn't post to credit reports so I wasn't sure how anyone would know.

if it's a problem I won't do it just didn't want it to hurt me. I'm not trying to discharge it.

[bcohen]

I personally would not recommend taking on additional debt--especially a high-interest payday loan immediately before filing. You should instead stop paying all unsecured debt, as these debts will be discharged anyways. This includes any medical bills, credit card bills, judgments from consumer debts, etc. Also, if you are behind on your utilities, and cannot afford to bring the accounts current, you can include this in your bankruptcy as well.

[Leesa926]

Thanks. I figured it out and won't have to take the loan.