When people have accumulated huge amounts of debts and run out of options to get cash, they resort to extraordinary measures. A payday loan is one such method which has been used by scrupulous lenders to trick people who have been facing monetary issues out of their hard-earned money. Payday loan has an interest rate of a whooping 99% but dire circumstances require dire measures, hence people agree to this form of a loan. According to Dallas based bankruptcy law firm Recovery Law Group, people who opt for payday loans are often left at a worse condition than before.
Stopping payday loans is quite difficult, even with bankruptcy. Although bankruptcy can hold most collection actions including foreclosure, repossession, and wage garnishment; when it comes to payday loans, an automatic stay is not enough. This is because, in lieu of a payday loan, you are required to give post-dated cheques to the creditor for the repayment of your loan. Thus, if you wish to prevent those cheques from encashment, you need to make extra efforts. Mere bankruptcy filing won’t be enough in this case.
Though payday loan lenders can cash the post-dated cheque, an efficient bankruptcy lawyer can ensure that your funds are safe. You can either opt for stop payment on the cheques given to the payday loan lender or close the concerned bank account. Bankruptcy lawyers can guide which would be the better option from the two choices.
The timing of bankruptcy filing is also important. If you borrow more than $750, and you wish to include this debt in your bankruptcy, you need to wait a minimum duration of 70-90 days. A bankruptcy lawyer Dallas can help you get your papers in order and ensure that most of the debts you have incurred are included in your bankruptcy papers. If you haven’t hired an attorney for your bankruptcy case, you can call 888-297-6023 to schedule an appointment for a consultation.