speaking of payday loans

[bkruptfool]

I don't see how storefront payday loans are dischargeable. You have to write a check in order for them to give you the loan. If you file, can't they still cash your check? And if you cancel the check after you file, isn't that still check fraud?

[keepmine]

Since both parties know the check is no good at the time it's written, the transaction is one of unsecured debt.
If they try and cash it after you file, they run afoul of the automatic stay against collection activity.

[HHM]

It is a dischargeable debt and no, it is not check fruad, as Keepmine pointed out, both parties know the check is no good at the time it is written, so there can be no fraud.

[bkruptfool]

that doesn't make sense to me

How would the storefront know the check wasn't good at the time it was written?

[JollyGG]

How would the storefront know the check wasn't good at the time it was written?

If you had the money in the account on the day you took out the loan, you wouldn't need the loan would you.

The reason the check is post dated is because there will not be money to cover the check until that future date. That is how these places work. Therefore everyone knows at the time of writting the check that it is not good.

[treehugger1]

Think about this. Why would they give you a loan for a check that is not good until a future date? In Oregon a post-dated check is never considered fraudulent at the time it is written. After some family ermergencies I took out several payday loans and eventually defaulted on all of them. I immediately closed my bank account and notified all of these companies that the checks were null and void. I have slowly paid off 70% of these companies on essentially my terms. They are just another creditor in most states and any money owed them should be included in the creditor matrix. Months ago, I ran this by legal counsel and he stated that while we would include all PD loans in the matrix should I file, the companies not licensed in Oregon would not dare file a claim. They would be admitting they violated state law. This has been very advantageous when dealing with three internet PD loan companies. Now, I should never have gone the route of PD loans, but who says we are always rational. Unless your state has strange laws, they should be included in BK. In fact, if you are filing a BK 7, you definitely want these folks discharged!

[Blackqueen]

Yep, my lawyer advised me that I can include all (3 companies) payday loan companies that in my BK.

[FilingOnMyOwn]

The discharge letter one receives after bk clearly states that all debts must be discharged.

[bige1030]

If they try and cash it after you file, they run afoul of the automatic stay against collection activity.