Payday loan

[KKAB]

[zenmamajen]

Been there done that! The payday loan trap is evil and hard to get out of once you start. At least it's through your bank so you're not paying 300-400 percent interest like I've been. ($345 to pay back a $300 loan)

(Edit: totally misread what you said; never mind)

Cut whatever expenses you can.... assuming you already did, though.... no idea if/how to include this in BK

[KKAB]

Yes, they are evil; I thought 125% was bad! I am paying my car payment a month behind. I found out they consider it late at 10 days though, so I will need to catch up on that one, too.

[HHM]

All you can do is break the cycle. $300 is below the threshold for the cash advance 70 day rule, so the loan is not inherently objectionable. I wouldn't worry about BK'ing the loan.

The issue with payday loans ist he practical problem. Since this is through your bank, I imagine if the loan goes unpaid, they take it direct from you checking account, correct? Are you pay checks direct deposited?

Generally, a person with payday loans where the payday loans have access to your checking account, you need to take some steps before filing BK.

1. Get a new checking account at a different bank (odds are, since you are bk'ing a debt to your bank directly, i.e. the branch itself, they will probably close your accounts)
2. If you can, start cashing your paychecks, or start getting them direct deposited into this new accounts
3. Clear all funds out of your former bank.

[KKAB]

Thanks. I have stopped all direct deposits and we are using cash only now. I am planning on opening a new checking account as soon as we file so I don't have to list it on the BK. They will take it out of my account in 30 days, but a negative balance is dischargable, I believe. I guess I will just list this advance as a debt so I can just file and get it over with.

[keepmine]

Thanks. I have stopped all direct deposits and we are using cash only now. I am planning on opening a new checking account as soon as we file so I don't have to list it on the BK. They will take it out of my account in 30 days, but a negative balance is dischargable, I believe. I guess I will just list this advance as a debt so I can just file and get it over with.

Go ahead and get a new account now. No law says you can't have a checking account and file a bk petition. Just disclose the account.