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10-26-2009, 07:33 PM

My husband and I have decided to file bankruptcy. We know we are eligible for Chapter 7 based on a previous consultation. We have an appt on Fri with a local attorney in our hometown to start the proceedings. Before we go, I have a couple of questions. We live in WI if that matters.

1. Can we include our payday loans? All three are current as of today, they are with CheckIntoCash, The Cash Store and Security Finance. Kind of a sub question to that...if we can include them, how do we make them stop the automatic withdrawls from our checking account? They withdraw the interest and then eventually the full loan amount automatically from our checking account on my husband's payday. Can we make them stop?

2. How old does the debt have to be to be included in the bankruptcy?

3. Does the debt have to be in collections or can we include our medical bills that are actually current right now (we are drowning in medical debt)?

4. Will my attorney seek out all of my old debt or do I need to find it all? I ask because a lot of our really old debt has been sold multiple times to different companies for collection. It's nearly impossible to track which is which.

Thank you very much in advance to anyone that can even just answer one of my questions!

SC · 10-26-2009, 11:47 PM

Ch 7 would eliminate most of your personal debts, credit card debts, medical bill debts, payday loans, loan judgments and judgment granted in an auto accident. You can also include tax debts that are more than three years old in a bankruptcy. Hence, you may include the pdls in bk but before that you may wish to check the legal status of these lenders in your state too.

It's better to do your homework since you wouldn't like to leave out any debt that can haunt you later.

There is no policy that the debt needs to be old to be included in bk. Even an immediate one can be attached.

Anyway, you must get all your confusions cleared by the bankruptcy lawyer.