Yes, payday loans are considered creditors that can be added to a Chapter 7 bankruptcy petition. They will be discharged along with all your other debts.
Unfortunately, many people are not aware of this and do not include the payday loans in their petition due to intimidation tactics used by payday loan companies. Some of the tactics these companies use start way before a bankruptcy is anticipated. They will add a clause in the contract you originally signed that prohibits you from including them in a bankruptcy. But be assured that you are able to put your payday loan on a bankruptcy and that this is a clause that cannot actually be enforced by a payday loan company. Payday loan companies put that clause in a contract because they are insistent that you pay back the loan plus the exuberant interest rate they charge. This is how they make their money.
Make sure you consult with an experienced, highly skilled bankruptcy attorney regarding payday loan issues in your bankruptcy. For a free consultation, contact Dallas bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or info@fnlawfirm.com.