Consequences of payday loan after filing

[shivas]

Hello all. I just filed chapter 7 on 3/31. There was a garnishment in place on my paycheck, and though my attorney has contacted my employer and faxed the filing, my employer states that they will not release the garnishment funds until they receive a release from the garnishor's attorney. This garnishment was just recently entered within the past 30 days.

I am currently renting, and due to the garnishment my last check was not enough to pay rent (I am about $70 short).

Will it affect my filing if I do a $200 payday loan and pay it back on my next check? As long as the garnishment is not taken from my next check, I will be able to pay it back and not get into the common re-write trap.

I don't know how else I am going to pay my rent!

[momofthree]

I would bet your landlord would be understanding and let you pay what you have now and then pay the other $70 on your next payday.

[ForumReader]

I would bet your landlord would be understanding and let you pay what you have now and then pay the other $70 on your next payday.

Yes, I agree. To the OP, talk to your landlord about your situation and I am sure he/she will understand. I had a little bit of a setback with paying my full rent on time when I first filed for bk and resetting my cashflow for my budget without using ccs. I talked to my landlord and he understood and we worked out an rental payment arrangement until I was back on my feet. Now I pay my rent in full on time. Anyway, as for payday loans, just keep in mind they impose outrageous fees. Good luck.

[momofthree]

Yes, I agree. To the OP, talk to your landlord about your situation and I am sure he/she will understand. I had a little bit of a setback with paying my full rent on time when I first filed for bk and resetting my cashflow for my budget without using ccs. I talked to my landlord and he understood and we worked out an rental payment arrangement until I was back on my feet. Now I pay my rent in full on time. Anyway, as for payday loans, just keep in mind they impose outrageous fees. Good luck.

Agreed! You're probably better off paying a late fee to your landlord than the fee to the payday loan place. But really, I'd bet your landlord would waive the late fee if you just go talk to them and explain the situation.

As a side note, if you're only short $70, why would you take out a $200 payday loan? You need to get out of this "debt" mindset. If you HAVE to borrow, borrow ONLY what you need, no more. But again, talk to the landlord, that really is your best option...

[Bell30656]

Keep in mind that your landlord can not evict you right now. You are better off paying the landlord late than borrowing at that ungodly interest rate. When you file a Chapter 7 an automatic stay begins to give you a little breathing room until the 341.

Go talk to your landlord. If he/she is a jerk about it then they will still have to wait to take any type of action against you and you will be current by then.