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Are payday loans dischargeable in bankruptcy?

December 7, 2009

Payday loans, also known as cash advances, are short-term loans made at a high interest rate. Payday loans are typically made for a relatively small amount of money, but because of the high interest rate, the debt can quickly spiral out of control.

In most cases, payday loans are dischargeable in Chapter 7 bankruptcy. Payday loans are a form of unsecured debt, and virtually all unsecured debts are discharged in Chapter 7 bankruptcy.

For free legal assistance with Chapter 7 bankruptcy, contact the bankruptcy lawyers of Fears | Nachawati today. To speak with one of our Texas bankruptcy attorneys, email us or call our toll free number at 1.866.705.7584.

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