Pay Day Loan collections after bankruptcy

[OhioFiler]

I must agree. It is not the fresh start people brag about. That is just a term that people use to feel good about it and generate business, not a bad term, but not an accurate term. BK is a second chance to rebuild and try to do things better, but it is far from what I call a fresh start or anything fresh.

Here is the definition of Fresh Start as listed in the glossary @ US Courts . Anyone who wants to argue that BK doesn't provide a fresh start. is a marketing term or not accurate should read the Court's definition.

If you don't want to go to the link here it is:

[Bell30656]

Music in Michigan it is also easy to prosecute a "bad check." No need to go to the police, rather just a letter and then magistrate court. Unfortunately, this is a method that some collectors have been using. The actual debt could be discharged but the NSF check could then be collected upon via the criminal court system through restitution which is not dischargable.

Most debtors when threatened with this type of criminal prosecution will pay something to settle the debt. Again, the most important thing you can do is ASK YOUR ATTORNEY. That is why we paid the attorneys the big bucks. To answer these type of questions. Forums are great and many on the forums know more than some of the attorneys but the attorney specializes in YOUR state's laws.

[keepmine]

Typically, most payday loans involve the borrower giving a postdated check to the lender.
If this is the case, it's been hashed out here before. Article 3 of the UCC defines a check as drawn on bank and payable on demand. Since the check is post dated, it isn't necessarily paid on demand. As a result, payday loans set up in this manner are treated an extension of credit and are unsecured debt.

[moneytrouble]

Hopefully this is correct, as they are threatening me with legal action for writing a bad check. No check was actually written, but this was an automatic withdrawal from my checking account 15 days later. I asked them politely to stop calling me, but the person stated they will continue to call me legally all they want, everyday of the week for years, until I pay them. He stated the calls are not about the loan, but the NSF("bad check" he keeps calling it), so even though this loan was discharged, it does not fall under bankruptcy discharge "do not call" laws. He stated they are law offices that are pursuing a legal matter, not a loan matter. I looked up the company on the Internet, and it seems they are a collection agency, even though there is no exact address for them, so who knows how real this is. They are calling me at home and at work.

Typically, most payday loans involve the borrower giving a postdated check to the lender.
If this is the case, it's been hashed out here before. Article 3 of the UCC defines a check as drawn on bank and payable on demand. Since the check is post dated, it isn't necessarily paid on demand. As a result, payday loans set up in this manner are treated an extension of credit and are unsecured debt.

[bk2009]

A bad check over $500 is a felony, under a mis. I'm wondering, why they just don't send it to the police if this is an NSF issue? Sounds to me like they are trying to scare you into paying. Did you contact a lawyer?

[moneytrouble]

I did yesterday, before they started throwing out the "bad check" thing today. My lawyer yesterday just stated to send my discharge notice to them, which I cannot do, as they provide me with nothing but a number, and won't provide an address until I promise to pay them over the phone. The phone call is being recorded supposedly. I am hoping after the long discussion with them today, they will stop calling me, but it sounds like they will harass me for the next 7 years, or however the long the law allows them. I would pay the loan, but then who else would come after me to pay their loan for quote "Non-sufficient funds". I filed bankruptcy because I am bankrupt, not because I have money in the bank to pay back loans. Plus they racked on about $100 in late fees every 2 weeks for about 2 months straight, plus NSF fees added on. So the total is way over whatever I originally owed. The guilt thing they pull is kinda working for me, as I do not want to be on some bad check list. NSF funds can be listed on bad check lists, from what I came across on Google. This is so depressing. Even if I pay the amount in full, my name will still be on the bad check list.

[bk2009]

Well, who are these scumbags? Tell them you need to know heir names. Then google.

[AshShep01]

It could just be that the right people from payday did not get the notice of BK or the discharge. It is possible the wrong address was applied or they never got the letter.

Did you ask them?

I must have missed the bad check part somewhere, what does that have to do with this.




I must agree. It is not the fresh start people brag about. That is just a term that people use to feel good about it and generate business, not a bad term, but not an accurate term. BK is a second chance to rebuild and try to do things better, but it is far from what I call a fresh start or anything fresh.

I will have to agree with the quote, it is not a accurate term.. It is a second chance to rebuild your credit. But I am still suffering after BK to get caught up on all my bills.

[moneytrouble]

Well, who are these scumbags? Tell them you need to know heir names. Then google.

Yep. Some people equal Pay Day loan companies to the mob or neighborhood loan sharks.

[walkthaplank]

You can get the corp info about the company online. Send a copy of your discharge cert mail return receipt. Notify them that they are in violation of the BK court permanent injunction and the next step is to bring this matter up with the BK judge who issued the permanent injunction and that you will ask for damages. Also notify them that you are filing a complaint with your state's AG office as well as the AG in their home state.

You need to be aggressive with these people. Ultimately (and they know this) your payday loan secured with a check is nothing more than a civil matter that has been dealt with under US BK code. *IF* they try to make it a criminal matter that is exactly what the police or DA will tell them.

Any phone call starts with you saying that you are recording the phone call (even if you aren't). Next you advise them (on the recording) that they are in violation of the permanent injunction issued by US BK court for (whatever district issued it) and tell them everything above and not to contact you again. If they try to talk over you, talk right over them as you are beyond the point of being polite. BTW, your lawyer should be doing this, he should be licking his lips for the opportunity to grab some free money off of these guys.

[keepmine]

A couple of you guys really need an attitude adjustment coupled with a reality check.
I've posted more than a few times that bk is a 2 step process. and the filing part is the easy part.
What comes next is tough. You gotta fix the problems that created the bk.
If it's income, you need a better job or, some pt time/weekend work. And yes, I'm aware we are in a deep recession but, you can't let that discourage you. Get out there and start the application process. You only need one person to say yes.
To me, the status quo is just not acceptable. I'm within a few months of the 4 year mark of my filing. Post discharge, I got a better job {benefits wise} and then a few months later got a job working overnight a few nights a week for a major retailer. Yes, I'm damned tired a lot but, my income is up 40% from when I filed. We all need a realistic budget and should cut corners and so forth and so on but, you're going to find that will only take you so far. Unless you can actually raise your income you'll find that inflation will carry you right out the door.
Bottom line, stop whining about bk not being a fresh start. It is a fresh start if you take some initiative.

[OhioFiler]

I will have to agree with the quote, it is not a accurate term.. It is a second chance to rebuild your credit. But I am still suffering after BK to get caught up on all my bills.

I would love for you to expound on this post.

[Bell30656]

In Michigan where the OP lives the warrant for the check is not sworn out by having to convince the police and/or district attorney. To swear out a warrant for a NSF ("Bad") check one must only prove to the magistrate judge that (A) the check was dishonored by the bank. (B) That a notice was sent to the writer giving him/her a chance to redeem it plus fees.

Here's a real interesting fact about magistrate judges in Michigan and not surprisingly in Georgia (my home) as well... The only educational requirement for a magistrate judge is a high school diploma or GED! Yes, Bubba can get elected magistrate judge and doesn't have to have any type of law degree.

At this point, in the OP's shoes, I believe that I would insist that the caller identify themselves, the company and explain how they have any right to attempt to collect the NSF check. They required you to identify yourself, require them to do the same. I would also inform them that you are recording the calls as an earlier poster suggested.

Only the OC can swear out any type of warrant NOT a JDB or CA. Be sure to explain to your lawyer that they are trying to collect the NSF check rather than the discharged debt. He may refer you to a criminal lawyer at that point. Is the payday loan company in Michigan or over the internet? Did they actually present a check(s) to your bank that was dishonored? Have they sent you a certified, return receipt letter as required by the MSA 27A.2952?

[Bandit]

Here is the definition of Fresh Start as listed in the glossary @ US Courts . Anyone who wants to argue that BK doesn't provide a fresh start. is a marketing term or not accurate should read the Court's definition.

If you don't want to go to the link here it is:

The characterization of a debtor's status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.)

if they are going to claim it is the charcterization of a debtors status after the BK, then they need to include everything in the definition and not just the debt, for example, car insurance and other insurance going up in this fresh start, not being able to get a job in certain fields in this fresh start, paying 35% interest on a car loan in this fresh start, having people look down at you for the next 10 years in this fresh start, Reestablishing credit for 8 years in the fresh start, a lousy credit score which is a big deal today, some people still come out owing tens of thousands of dollars on non-discharged things like school loans... and a host of other things they conveniently left out of the definition.

I have always disagreed with that term, but if it makes people feel better to use it then good for them.

[Bandit]

I will have to agree with the quote, it is not a accurate term.. It is a second chance to rebuild your credit. But I am still suffering after BK to get caught up on all my bills.

there are people that BK does absolutley nothing to help even if they were to file and some of those people are on this forum and they know it will not help them. Very sad situations, especially those who are denied health insurance because they have so many medical problems.