When you file for a Chapter 7 bankruptcy all collections by payday loan companies must stop due to an automatic stay. What this means is that they cannot continue to make harassing phone calls or continue attempts to cash any postdated checks you may have given them as promissory notes. They also cannot place a lien on your paycheck.
Of course, the Chapter 7 bankruptcy must be filed in order to have the automatic stay come into effect. Additionally, due to the known aggressive tactics by payday loans companies, it is advisable to speak with a bankruptcy attorney in order to make sure that the Chapter 7 bankruptcy application is filled out correctly.
Many people are also concerned about their ability to take out a loan in the future. Typically it is best to wait at least one year after your bankruptcy is discharged before you apply for any type of loan. In the meantime it is best to pay your bills on time to help raise your credit score and qualify for a loan with lower interest rate versus the high payday loan interest rates.
Contact law firm, Fears | Nachawati, to schedule a free consultation with an experienced bankruptcy attorney by calling toll free at 1.866.705.7584 or email us at info@fnlawfirm.com to discuss your options for filing bankruptcy.