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Bankruptcy and payday loans. I have some outstanding p-day

 
WALLSTREETESQ's Avatar
  • Answered by:WALLSTREETESQ
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Customer Question

Bankruptcy and payday loans. I have some outstanding p-day loans that I took out after the bankruptcy--yes, I know against the rules. I have paid or nearly paid all of them off. Will the Trustee ask for a dismissal? I have never missed a payment.

 

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State/Country relating to question: Louisiana

Submitted: 347 days and 14 hours ago.
Category: Bankruptcy Law
Value: $25
Status: CLOSED

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Expert:  WALLSTREETESQ replied 347 days and 14 hours ago.


WALLSTREETESQ :

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. 

WALLSTREETESQ :

Did you file a chapter 13 bankruptcy or chapter 7?

Customer :

Chapter 13. Actually, a dismissal hurts her worse. It would free up about 650 a month for me--and I am working.

Customer :

She is not paying because she is not working.

WALLSTREETESQ :

You are to advise the trustee if you incur new debt, however, in most cases, if you are paying the chapter 13 plan on time, the trustee would not dismiss the case.

WALLSTREETESQ :

A payday loan is not considered a typical unsecured debt, since it is secured by your paycheck, so the trustee should not have a major issue.

Customer :

Thanks. I kid you not when I say that she wants me to pay for a vacation to Disneyworld and we are in Bankruptcy.

WALLSTREETESQ :

Good luck.

Expert TypeAttorney
Category: Bankruptcy Law
Pos. Feedback: 99.1 %
Accepts: 2137
Answered: 5/5/2012

Experience: 10 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS

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Customer replied 347 days and 14 hours ago.

Actually, it is tied just to the checking account, which is now closed. As I understand Louisiana law they have several problems. The one in question is not legal; not licensed in Louisiana. They loaned too much money and allowed roll-overs. Their legal remedies as I understand them are to sue me for the principle only--in the parish I reside. A lot of hassle.

Accepted Answer

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Expert:  WALLSTREETESQ replied 347 days and 14 hours ago.

If you are in a chapter 13, they cannot sue you without filing a motion with the bankruptcy court, and if they do then the trustee will know about the advance, and allow them to sue you for the amount owed.

Expert TypeAttorney
Category: Bankruptcy Law
Pos. Feedback: 99.1 %
Accepts: 2137
Answered: 5/5/2012

Experience: 10 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS

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