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bankruptcy and filing on payday loans in California, HELP!!!

Date: Wed, 04/04/2007 - 21:42
Submitted by on Wed, 04/04/2007 - 21:42
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I have just recently filed for bankruptcy, chapter 7, due to being put on permanent disability and losing half of my income. Anyway, my major concern is that I am filing on 6 payday loans and want some advice on best way to make sure the payday companies don't debit my account for the money. Should I stop payment on my checks? Should I make sure I don't have sufficient funds in the account when the checks come through (May 1st)? Or should I close my account?

I am also wondering if I should send a letter to the companies that have a clause that lets you reject binding arbitration. The contracts make it seem like you cannot file bankruptcy on their loans due to the binding arbitration clause, or that if you do the arbitratiion will survive the discharge.

I'm also scared, nervous... that I took out these loans after I had already filed for bankruptcy. These are reoccuring loans with the same companies, it's not like I just took out the loans for the first time this month. But some of the contracts do state that you agree you have not or are not intending to file baankruptcy. Should I be scared of faud or being sued? :roll:


Quote:

I'm also scared, nervous... that I took out these loans after I had already filed for bankruptcy.


Any debt incurred after filing BK will not be discharged.

Quote:
I am also wondering if I should send a letter to the companies that have a clause that lets you reject binding arbitration.


You cannot opt out of a binding arbitration agreement.


Submitted by Morningstar on Thu, 04/05/2007 - 00:32

Morningstar

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No I have not yet listed them in my filing. I can ammend my filing however. I don't know which way to go. Should I list them or not? If I don't then my checking account will be debited for a sum total of 2100.00 on the first of May, and I know they won't let me reloan, because they probably have a data base showing I filed for bankruptcy. I don't mind paying back if I have to, but not all at once. How can I stop them from debiting my account on May 1st. Should I close my account, have insufficient funds on that date, revoke my ACH authorization(4 of the 7 allow you to do that in their contract)and stop payment on the paper checks. HELP!!!

Also, 4 of the 7 contracts due allow me to opt out of the binding arbitration claus by contacting them in writing return receipt requested, within a certain time frame. Should I do this?


Submitted by mokey62 on Thu, 04/05/2007 - 12:59

mokey62

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These are storefronts, you need to be careful because they are licensed and usually when you take them out after filing bk and then go to add them, they do show up to contest it, and from what others have shared with me about their experiences they usually win and the judge sides with them. I would consult your attorney.


Submitted by WHEREAMI? on Thu, 04/05/2007 - 13:14

WHEREAMI?

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okay, so if I don't file on them how do I stop them from taking out a combined toatal of 2100.00 from my account on May 1st? I'm really stressing about this. Because then I won't be able to make my house payment for May because the money will be gone.


Submitted by mokey62 on Thu, 04/05/2007 - 13:25

mokey62

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I have a pay day loan which is old and has grown to $750.00 from $300.00, since they were being ever so nice I was going to put them in my BK, they tell me that this is a criminal affense and that I need a criminal attorney not a BK attorney. Is this true or are they bsing me, they are such a lovely group of people.


Submitted by on Tue, 04/13/2010 - 15:24

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mokey62, the only way to stop them from debiting your account will be to totally close the account. please check your state laws in regards to closing a bank account with checks out though just to be safe. but they will never stop debiting your account until it has been demolished. ie have the bank freeze it or make it deposit only. talk to a person at the bank. they will assist you.


Submitted by bastoops on Tue, 04/13/2010 - 21:50

bastoops

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