Illegal Loans and Bankruptcy
Date: Wed, 08/15/2012 - 06:58
My lawyer was very clear that I need to include ALL of my debts in the bankruptcy.
Regarding the illegal payday lenders:
I had a bunch of them that I was borrowing and renewing up until February of this year. I changed banks, sent the letters, stopped paying....etc. I have not heard any more from a single one of these lenders for a few months now. My argument to not include them is that they have already written me off--I know they have no legal means to get any $ from me as it stands today.
By including them, they will be notified, and if they respond, they will be paid at 100%. I think it's probably unlikely that they will respond. But if they do, the debts would be assumed valid and I will have to include them in my repayment plan.
I understand the benefit is that by including them and if they dont respond, legally they cant contact me..but I wouldnt expect them to care about a legal order to stop contact.
Has anyone dealt with this? I'll probably cross post this in the bankruptcy board as well..Not sure where it really belongs.
Thanks
Don't include the illegal payday lenders. You don't owe them an
Don't include the illegal payday lenders. You don't owe them anything. Technically there is no debt.
I wanted to update: You do need to include the unlicensed len
I wanted to update:
You do need to include the unlicensed lenders when you file. You are to list all debts that are claimed. Typically very few if any of the illegal lenders will make a claim. So why bother with them?
1. If you are in a plan that will only pay a small percentage to unsecured lenders--there's not much risk. If they file a claim, they wont get much $ even if the claim is allowed.
2. You can dispute the debt through the bankruptcy process. Will be cheaper than potentially having to fight them--or more likely someone that may have bought the debt down the road.
3. Once discharged--you have undeniable legal proof that you dont owe the claim. If you are taken to court by an unlicensed lender without a discharge you will likely have to pay to fight the claim. If a lender calls you after a discharge--you can sue them.
I wanted to clarify--I have asked multiple sources and everyone is clear that you must list all debts--legitimate or not. It really is to your benefit to include them to stop all contact--and have ammo if they do contact you. In all likelihood they wont file a claim but amy keep contacting you--and depending where they are located you can get a judgement against them.
