Can Bankruptcy Help me Settle Paycheck Advance Loans in Ohio?
Payday loans are meant to help you pay off a debt, bill, or an unexpected expense until you receive your next paycheck, bonus, or extra money; however, these loans are causing people more headaches and debt than they are worth, but what can you do about them once you take out the paycheck advance loan? Below are some of the options that are available to you, in regards to filing bankruptcy and the payday advance loan that you may now owe.
The first thing that you could try to do is cut back on your spending in order to repay the payday loan, but that could prove to be difficult, especially in these tough economical times. If you refuse to pay the loans, the payday lender could take the money out of your account, since you gave them permission to do so when you took out the paycheck advance loan. There is little to prevent the check from going through, and if you do not have the funds in your bank account, your account could be overdrawn, which leads to more fees and a slippery slope into more debt. You could close your bank account, but it is more advisable to handle this situation before it rises to a crisis level.
There are a variety of options available to you for your Ohio payday loans, including Chapter 7 Bankruptcy. Filing bankruptcy on your payday loans can discharge the debt entirely in most cases and also prevent the payday lender from attempting to collect on that debt anytime in the future. However, there are rules and regulations in regards to filing bankruptcy on the paycheck advance loans in Ohio.
The paycheck advance loan is considered a general unsecured debt under Bankruptcy law, which makes it dischargeable in a Chapter 7 Bankruptcy. This means the debt is not secured by collateral and the lender cannot repossess your belongings due to failing to pay. Some of the requirements that you must meet in order to settle your paycheck advance loan under Chapter 7 Bankruptcy in Ohio include:
• Having a monthly income that is equal to or less than the median monthly income for the state of Ohio.
• Passing the Chapter 7 Bankruptcy means test, giving the bankruptcy Court and Trustee a snapshot of your income for the 6 months prior to filing your bankruptcy to determine if you must repay a portion of your debt through Chapter 13.
• Undergoing credit counseling before you file Chapter 7 Bankruptcy in Ohio.
If you have become a victim in to one or several of these payday lenders, then filing a bankruptcy can assist you in discharging the debt associated with these loans and also allow you to move forward with a brighter financial future.