Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Payday loans and bankruptcy

In our last post, we looked briefly at new rules established by the Consumer Protection Financial Bureau which would protect consumers from some of the more risky aspects of payday lending. As we noted, there is a lot of opposition to the new rules from the lending industry, and it remains to be seen whether legal action would eventually be taken in opposition to the new rules.

It is worth pointing out that those who are in a difficult enough financial situation that they are making use of payday loans should really consider speaking with an experienced bankruptcy attorney to determine their options for debt relief. Payday loans are high risk and using them is generally not a wise decision. 

Using payday loans to pay off debts or make ends meet can lead a struggling debtor into a sea of debt that can become very difficult to escape from short of bankruptcy. Typically, a debtor will have other, safer alternatives available to help them address their financial situation.

That being said, those who do carry payday lending debt typically can discharge such debt in bankruptcy, not only because payday loans are unsecured, but also because they don't fall into any special category making them a high-priority debt. In any bankruptcy case, of course, it is important to work with an experienced local attorney not only for accurate information and guidance about the bankruptcy process, but also for zealous advocacy to ensure one's interests are well represented throughout the bankruptcy process.

Source: Nerdwallet, "How the `Vicious Trap' of Payday Loans Caught a Texas Mom," Claire Tsosie, Nov. 7, 2014. 

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
735 West Wisconsin Avenue
Suite 600
Milwaukee, WI 53233

Phone: 414-326-9231
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map