Federal Perkins Student Loan

[SecondChanceGal]

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[lrprn]

I can receive $700 in a Federal Perkins loan that I would get Sept 4.

Using money you say you are borrowing to go to school but you use instead for another non-school purpose is not the best idea.

...I have a PayDayCash loan of $400 to pay back....

If you know you are going to file bankruptcy, stop paying ALL your unsecured debts right now. Payday loans are non-secured debts. Why are you throwing good money away that could be kept to pay your lawyer and not have to take out the Perkins loan?

...it's put me so far behind that I had to get the PayDayCash loan in order to make it the past couple weeks.

When did you take out the pay day loan? And when do you plan to file?

[SecondChanceGal]

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[CindyLou]

Take the perkins loan but DONT use it to pay the payday loan. Close the checking account used to secure the loan and include the loan in your bk. This is an unsecure loan just like any other. The perkins loan can be used for education related expenses such as books, gas for your car, repairs for your car to get to school, etc, etc....

[SecondChanceGal]

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[CATCHMEIFYOUCAN]

cindylynnsmith Take the perkins loan but DONT use it to pay the payday loan. Close the checking account used to secure the loan and include the loan in your bk. This is an unsecure loan just like any other. The perkins loan can be used for education related expenses such as books, gas for your car, repairs for your car to get to school, etc, etc....

I would agree with cindylynnsmith if I were in your shoes. DEFINITELY Close your bank account.

SecondChanceGal If I don't pay my PayDay loan, I'm sure the finance charges are going to be outrageous

I take payday loans out myself and I have to write them a check, they give me a full month to pay them back and if I don't they will automatically take it out from my checking account. By the way the fee they charge me if I wait the full month to pay them back on a $400 loan is $60!
On the loan agreement it states the annual percentage rate: the cost of my credit as a yearly rate: 202.78% ! ! !

SecondChanceGalHas anyone else here filed bankruptcy on a Payday Loan before? How aggressive are they to come after you for it if you just stop paying it?

I saw a post by someone way back when who listed their payday loan(s). It is up to the creditor to prove fraud, just keep that in mind, and avoid talking to those people, because they'll throw you some b.s. saying you can't file bankruptcy blah blah blah. I had credit card with Chevy Chase, and the rep actually told me I was not allowed to file Bk since I just opened my account (which was like a year ago before I filed), little did she know!

Best of Luck, Catchmeifyoucan

[CindyLou]

Many payday loan companies will stay far far away from BK court because many of them are operating borderlining the law. Unless you took the loan out after you already planned to filed and unless you spent it on luxury goods, you should be fine...I'm sure you took it out as a last ditch effort to make things work. I wouldn't give that a worry. Close that bank account, file your bk and don't look back. This is about fresh starts. Put your good money only to good things on a move forward basis. Paying that loan back will not accomplish anything if it is dischargable in the bk. Worse case is if the payday loan company objects, which is unlikely, and wins, which is even more unlikely, then you would have to pay it back later. Keep us posted.

[lrprn]

This is an unsecure loan just like any other.

Just to be sure everyone here undertstands...a Perkins loan is a STUDENT loan made by the school SCG attends. It is unsecured, but it isn't dischargeable. SecondChangeGal will still have to pay it back directly to the school. Also the loan can't automatically be deferred or put into forebearance by filing bankruptcy either - she will have to apply for that.

One more disadvantage - when SCG doesn't use the Perkins loan for the reasons she stated when applying for the loan, that is going to impact her standing with the educational institution she attends as well.

I still don't think using the $700 for this purpose is worth all the fallout when she has a much better way to get the money - namely not paying the payday loan and her credit cards right now and using that money to pay her lawyer instead. Since there's no emergency here, it's best to wait a few more months to file and stay in school in good standing to get to a better job and pay in the future.

[CindyLou]

Take the perkins loan but DONT use it to pay the payday loan. Close the checking account used to secure the loan and include the loan in your bk. This is an unsecure loan just like any other. The perkins loan can be used for education related expenses such as books, gas for your car, repairs for your car to get to school, etc, etc....

Let me clarify, I was speaking of the PAYDAY LOAN being an unsecured loan like any other, NOT the student loan. Sorry, that paragraph was confusing. I was trying to pursuad her NOT to use her student loan to pay a payday loan but instead for the purpose it was intended: for studend related purposes only!!!!!! Sorry about the confusion!!!!!!

[SecondChanceGal]

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[CindyLou]

don't ever again say you were planning to file when you took that loan! do what you think is best, but really throwing your money after that loan just is not going to help your situation any right now. They can do their objections if they want and you can pay them their money on the other side of the BK if you need to on the worse case scenario. Unless you TRULY walked in that office KNOWING you were about to file BK and were planning to defraud them then it is not fraud. Again, only you know your heart and only you can decide.

Oh, and who are you trying to keep you name in good standing with? surely not a sleezy payday loan co? Once you do this BK you will not EVER set one foot in one of those places again!! You will have to take that vow! We have all been there, believe me but we must never go back there!

[lrprn]

SCG, we are all telling you NOT to pay the payday loan. It's unsecured and will be wiped out when you file bankruptcy 90 days from when you took out the loan. Let the payday guys call. Let them threaten. There's nothing legal they can do to you in 90 days.

Save up the money you were thinking of using to pay them, don't pay anything towards any of your credit cards or other unsecured loans. Use that money instead to pay your lawyer. It's called bankruptcy planning and every good bk lawyer would have you doing this before you file.

If you are worried about the calls, then get caller ID for the phone, turn off the ringer on the phone, and let an answering maching screen your calls. Send every one of your creditors who are contacting your parents a registered, return receipt letter stating they can only contact you at the following number. Then let your answering machine and caller ID give you peace of mind.

[lrprn]

don't ever again say you were planning to file when you took that loan! ... Oh, and who are you trying to keep you name in good standing with? surely not a sleezy payday loan co?

Cindy is absolutely right here.

SCG, you have to change your mindset. Filing bankruptcy is a cold, hard financial decision. Get your emotions out of what you are doing. Your creditors certainly have.

You are still under the impression that your payday loan place is operating with morals and ethics. That is so far from the truth, it isn't even funny. Let them pile on late fees when you don't pay. Who cares? It's all dischargeable after you file.

[CATCHMEIFYOUCAN]

Yeah, and once you file the automatic stay kicks in, and if they try and contact you they are breaking the law! Than you can sue them (or your lawyer will) AND maybe even get some money for violating the stay but thats will be another issue.

Best Wishes, CMIYC

[freshstart06]

SecondChance, not sure if you own property or assets but we were in the same boat as you, I could not afford a lawyer and we had pending lawsuits coming up. We just filed pro-se. if your case is simple ie you are uhder the median and no asset you can do this. Look at other previous post. Because it can be overwhelming you may want to either see if you qualify for free legal aid, find a paralegal to do the work for you (check out www.craigslist.com under legal, interview a few until you find one you feel you trust) Call the clerk office at the BK courts, they usually have appointed lawyers the help pro se fill out the forms. You can also pay around $20 for prepaid legal and they can help you fill out forms and will complete some legal forms for you. You can even fax over your forms once complete and have them review them.

Some people that could afford lawyers may not agree with this but sometimes you just can't afford a lawyer, if paying for a lawyer is taking away from you necessary household expenses to the point you can barely pay utilities, food, gas, you name and you don't really have asset to fight for, do it yourself, there are other ways to get assistance for filing out your BK forms.

My paralegal stayed up with me almost all night because I was so stress out. All I had to do is provide her the same docs as you would to your lawyer ie paystubs, credit reports, ect. We had to meet in person to sign and look over the docs. She does all my amendments and if the trustee would need extra paperwork or I have an objection she will help me with that paperwork.....ALL OF THIS FOR $200. No she will not be there to represent me at the meeting but heck from what I understand even if you have a lawyer you have to answer your own question anyhow. But when I call her she is there and always answers her phone and email, not someone that will leave her a message. she is available weekends most of the time.

You have to remember, it is you that have to try to figure out how to pay bills and if a lawyer is not in the budget, he is not in the budget. Sometimes you just can't do it. You are giving him money to help pay his bills while you can't pay yours trying to pay him. Girlie, if you have nothing to lose and your case is not complicated do this pro se with help (not pro se alone because you are a little stress like I was) One lawyer I saw told me, If I can read I can file on my own because my case was not complicated and he would not take my money like that.