Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.
Bankruptcy is regulated by Federal Law, and pay day loans are dischargeable in a chapter 7.
Kansas is also one State that strcitly regulates pay day loans, and are not kind to these companies.
Kansas Statutes Annotated Section 16a-2-404 states that all such loans must have a minimum term of no less than seven days and a maximum term of no more than 30 days. The maximum limit for any payday loan is $500, and a lender can't charge more than 15 percent of the amount of the cash advance.
All unsecured debts are forgiven when you declare for bankruptcy, these means your outstanding payday loans will no longer be of concern to you.
What about the checks that these companies require you write to them to secure the note, can they prosecute for a bad check, if you fill bankruptcy?
That is a common threat made by the companies, but it is not true.
being unable to pay a post-dated check is not a crime. When you wrote the check both you and the payday loan company knew there were not sufficient funds in your bank account to pay the check. Because there was no present intent to pay, the post-dated check is not a “bad check,” only a future promise to repay the loan.
Will the checks need to have a stop payment put on them to keep the companies from trying to cash them time after time? Or does the bank account need to be closed? Not all of the Companies require a post dated check, in fact most want the date that your make the loan on the check
You will need to close your bank account as soon as possible, and make sure no paychecks are deposited into the account.
You can also withdraw all the cash from the accounts.
Also once you file bankruptcy all collections efforts would have to stop, so they cannot take any money from your accounts.
If you have any further questions please do not hesitate to aks.
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I have more questions but will have to wait until my partner is here to make sure I have covered every thing!
That is fine, you can ask any time.
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