between a rock and a hard place

[tomuchdebt]

I found out today from our friendly atty generals office that payday loans in ohio fall under criminal, rather than civil. I was told that normally the payday loans are discharged along with everything else, however, they can still press charges???? I honestly don't know what to do, I have 4 loans out. I really need to get my case filed. I certainly don't want to have any charges pressed against me, but I have to include them, so what do I do??? I'm extremly lost with this one. Thanks TOMUCH

[HHM]

I can't speak for Ohio Law, but if you file BK BEFORE any criminal charges are filed, you should be ok. I assume they are talking about "bad checks". i.e. where you give the Payday loan place a check to secure payment, and when you default, the payday loan place attempts to cash your check, and if you have insufficient funds, the turn you over to the DA's office for passing bad checks.

I am a little surprised that you state takes that position.

[klux]

Try not to worry. I filed on 4 payday loans and my last day for objection to discharge was yesterday. Didn't hear anything from any of them. If they can prove you just took them out and then filed, you might have to pay them back. Same as any thing that is done within the previous few months leading up to the filing.

[tracy1878]

we are in ohio and in this same boat as well, but with 3 different loans... every 2 weeks my hubby has to go in, pay for the check, then rewrite for another 2 weeks... since it is a technically new debt, can it still be written off? once you get into bed with these places, it seems like you can never get yourself out

[HHM]

It really depends on how Ohio looks at it, I would say generally, the BK courts will not consider the renewal of a payday loan as a new loan.

You should definately LIST the debt in your petition, then it becomes the Payday loan places problem and job to incur the time, hassle and expense of objecting to discharge. If the amount is low enough, they won't, and it gets discharged, and if they do object, then they have to come explain themselves to the BK court, its generally a lose-lose situation for the Payday loan place...usually because there practices are boderline legal and often violate truth-in-lending.

It is not illegal to file BK on payday loans and it is not criminal. If you pass a bad check, that is one thing, but even in the payday loan scenario where you give a post dated check as security, BK courts are loathe to find those loans anything other than general unsecured loans.

DON'T DO THESE LOAN SHARKS THE FAVOR OF NOT LISTING YOUR PAYDAY LOANS IN YOUR BK.