Payday Loan three days prior to filing

[TeacherMomma]

I am trying to gain information for my co worker, who is in the process of filing. A payday loan within 3 days of filing - sounds totally fishy to me and like it would raise a red flag. It was for 750 and has been paid down to 500 now, so the intent to repay was there, it just has changed a bit. Is this an issue? It is a no asset chap 7 below median, no other issues.

[doni49]

A few things come to mind for me.

1 - what changed in three days to cause them to go from planning to repay it to now looking for a BK7?
2 - why does the BK7 need to be filed NOW?
3 - what was the money used for? And can that be proven?

I think that a worst case scenario is that this debt would not be dischargable and would have to be paid back. I don't believe it'd derail the BK7 completely.

[mountanddo]

What comes to mind is why you think it's fishy. Obviously they were planning on filing when they took the payday loan out. No one wakes up three days after they took a loan out and says to themselves "I think I'll file for bankrupctcy". They were in trouble way before that loan. I'm surprized they paid back $250.

[AngelinaCat]

I am trying to gain information for my co worker, who is in the process of filing. A payday loan within 3 days of filing - sounds totally fishy to me and like it would raise a red flag. It was for 750 and has been paid down to 500 now, so the intent to repay was there, it just has changed a bit. Is this an issue? It is a no asset chap 7 below median, no other issues.

Perhaps you have only come into knowledge of this situation with your coworker just within the last month or two. And that coworker is only telling you what he/she wants you to know right now. I understand your very generous wish to help, but some people cannot be helped--no matter how much they complain.

We have/had a 'friend' that stupidly mortgaged a paid-for home for some money to pay this, that, and everything else. Then, with the residual, she bought blackberrys, laptops, and all the HD toys. Now she has no money to pay her bills, much less the repair to the roof of the garage and home that needs to be done while she plays.

Then she has a broken-down beater of a van that she bought on eBay, thinking she could use it to transport her bed-ridden husband back and forth to the hospital. Much too long a story there. Meanwhile DH passed on and friend was left with this broken down van that eats oil and gasoline for lunch.

We gave her my perfectly good 1993 Pontiac Grand Am SE, which got about 26 miles to a gallon, plus $1000.00, if she would get rid of the horrid van, AND STOP USING PAYDAY LOANS!!!

This idiot promptly killed my beloved car, by overfilling it with oil, which it didn't need, and threw away our gift of 1K to get her on her feet, in favor of her shendyflecking stupid-assed payday loans.

I hate, despise, and otherwise cannot stand those things.

Despritfreya has a very good commentary on same, somewhere on this Board. I am not going to look for it now... It is bedtime for me.

Good luck to you, and my advice is to stay away from this coworker...

BTW We have not spoken to this 'friend' since.

[doni49]

Now Cat,

You don't need to hold back. Why don't you tell us how you REALLY feel?

[keepsmiling]

"shendyflecking"
Fairy Mod Mother--- did u make that up?
tis NOT in my Funk and Wagnall's.
What a FUN word! Must remember.

[ValleYum]

I'm confused (not that this isn't normal for me).

TeacherMomma? How could your friend take out a payday loan 3 days before filing BK *if* she is currently in the process of filing for BK?? Your friend has had the payday loan long enough to have made a payment on it... how can this be?

[TeacherMomma]

I guess she took it out, and was planning on filing that week, and planning on NOT including that payday loan into the Ch7, so she gets the pay day loan, then files. Intends and does repay some of the pay day loan, then decides just to include it (since it is no asset, her atty said just send them a copy of the filing, etc). I guess I shouldn't question her atty, (although he did not show up for 341) but it just seemed like a bad move and wondered what you all thought.
341 was held and report of no distribution was filed. I dunno.

[TeacherMomma]

Took out the loan on 1/9, filed 1/13. Made payment the end of Jan to pay day loan, another one due end of Feb that she now does not want to pay and include in Ch7.

I'm confused (not that this isn't normal for me).

TeacherMomma? How could your friend take out a payday loan 3 days before filing BK *if* she is currently in the process of filing for BK?? Your friend has had the payday loan long enough to have made a payment on it... how can this be?

[ValleYum]

Took out the loan on 1/9, filed 1/13. Made payment the end of Jan to pay day loan, another one due end of Feb that she now does not want to pay and include in Ch7.

Thanks for the explanation TeacherMomma!! I get it now!

[mountanddo]

Took out the loan on 1/9, filed 1/13. Made payment the end of Jan to pay day loan, another one due end of Feb that she now does not want to pay and include in Ch7.

It sounds like she didn't include this loan in her Bankruptcy but now wants to. I am guessing she paid back the $250 to show that she had "intent" to pay it back. Bottom line is that she took the loan out knowing she was filing BK. Fishy scheme if you ask me.

[AngelinaCatHub]

"shendyflecking"
Fairy Mod Mother--- did u make that up?
tis NOT in my Funk and Wagnall's.
What a FUN word! Must remember.

Oh she uses that at me all the time. If I hear it, I clear out for awhile. 'Hub

[AngelinaCatHub]

It sounds like she didn't include this loan in her Bankruptcy but now wants to. I am guessing she paid back the $250 to show that she had "intent" to pay it back. Bottom line is that she took the loan out knowing she was filing BK. Fishy scheme if you ask me.

I strongly agree. I am seeing this more and more. i.e "wayout"

[OhioFiler]

It sounds like she didn't include this loan in her Bankruptcy but now wants to. I am guessing she paid back the $250 to show that she had "intent" to pay it back. Bottom line is that she took the loan out knowing she was filing BK. Fishy scheme if you ask me.

Agree. This petitioner probably skirted the law and got away with it.

[OhioFiler]

Oh she uses that at me all the time. If I hear it, I clear out for awhile. 'Hub

Wise man. As a moderator she can probably put you in time out even at home!