Payday loans, pay or not to pay???

[Nessy]

I got suckered into the payday loan thing awhile ago and they are automatically debited from my checking account. I know bad, bad thing to get roped into. Do you continue to pay on these and if not how do you get them to stop taking the money from you. I listed them on my paperwork when I filed on 8/18/05.

Do I need to close my checking account or does that look bad to the Trustee?? I have my meeting on 9/22/05 and I want everything to go good. I have a garnishment and I am nervous that they will show up trying to collect.

[herekitty]

Good News: Payday Loans can be included in bankruptcy

Bad News: You can't close your account if it's negative.

Good News: I'm pretty sure you can close it if you have a viable explanation - it's better to do it prior to filing though.

Bad News: If you have already filed some people find it difficult to open a new account at a bank. There's a great thread about second chance checking you may want to check out if you've already filed.

There's a bunch of threads on this topic as well, go to the top of the screen and click "Search" and type PayDay.

Hope that helps!

[HHM]

Good News: Payday Loans can be included in bankruptcy

Bad News: You can't close your account if it's negative.

Good News: I'm pretty sure you can close it if you have a viable explanation - it's better to do it prior to filing though.

Bad News: If you have already filed some people find it difficult to open a new account at a bank. There's a great thread about second chance checking you may want to check out if you've already filed.

There's a bunch of threads on this topic as well, go to the top of the screen and click "Search" and type PayDay.

Hope that helps!

That sums it up nicely.

[herekitty]

Thanks HHM You're making me blush.

Turns out you don't really need to do a search (well you can for extensive coverage) but there is a "similar threads" link at the bottom of this page.

[Nessy]

Thank you

I don't really want to close my account but that money comes out every payday and I am not negative in my account. I just didnt want it to look bad that I closed it but I also didn't want them to get anymore money. Sounds Bad I know!

[tjrob]

all you have to do is put a stop payment on this charge. once you do this, your bank will not allow anymore charges from that particular company. it is legal and will not affect your BK.