Pay Day Loan collections after bankruptcy

[bk2009]

Well, who are these scumbags? Tell them you need to know heir names. Then google.

[moneytrouble]

I did yesterday, before they started throwing out the "bad check" thing today. My lawyer yesterday just stated to send my discharge notice to them, which I cannot do, as they provide me with nothing but a number, and won't provide an address until I promise to pay them over the phone. The phone call is being recorded supposedly. I am hoping after the long discussion with them today, they will stop calling me, but it sounds like they will harass me for the next 7 years, or however the long the law allows them. I would pay the loan, but then who else would come after me to pay their loan for quote "Non-sufficient funds". I filed bankruptcy because I am bankrupt, not because I have money in the bank to pay back loans. Plus they racked on about $100 in late fees every 2 weeks for about 2 months straight, plus NSF fees added on. So the total is way over whatever I originally owed. The guilt thing they pull is kinda working for me, as I do not want to be on some bad check list. NSF funds can be listed on bad check lists, from what I came across on Google. This is so depressing. Even if I pay the amount in full, my name will still be on the bad check list.

[bk2009]

A bad check over $500 is a felony, under a mis. I'm wondering, why they just don't send it to the police if this is an NSF issue? Sounds to me like they are trying to scare you into paying. Did you contact a lawyer?

[moneytrouble]

Hopefully this is correct, as they are threatening me with legal action for writing a bad check. No check was actually written, but this was an automatic withdrawal from my checking account 15 days later. I asked them politely to stop calling me, but the person stated they will continue to call me legally all they want, everyday of the week for years, until I pay them. He stated the calls are not about the loan, but the NSF("bad check" he keeps calling it), so even though this loan was discharged, it does not fall under bankruptcy discharge "do not call" laws. He stated they are law offices that are pursuing a legal matter, not a loan matter. I looked up the company on the Internet, and it seems they are a collection agency, even though there is no exact address for them, so who knows how real this is. They are calling me at home and at work.

Typically, most payday loans involve the borrower giving a postdated check to the lender.
If this is the case, it's been hashed out here before. Article 3 of the UCC defines a check as drawn on bank and payable on demand. Since the check is post dated, it isn't necessarily paid on demand. As a result, payday loans set up in this manner are treated an extension of credit and are unsecured debt.

[keepmine]

Typically, most payday loans involve the borrower giving a postdated check to the lender.
If this is the case, it's been hashed out here before. Article 3 of the UCC defines a check as drawn on bank and payable on demand. Since the check is post dated, it isn't necessarily paid on demand. As a result, payday loans set up in this manner are treated an extension of credit and are unsecured debt.

[Bell30656]

Music in Michigan it is also easy to prosecute a "bad check." No need to go to the police, rather just a letter and then magistrate court. Unfortunately, this is a method that some collectors have been using. The actual debt could be discharged but the NSF check could then be collected upon via the criminal court system through restitution which is not dischargable.

Most debtors when threatened with this type of criminal prosecution will pay something to settle the debt. Again, the most important thing you can do is ASK YOUR ATTORNEY. That is why we paid the attorneys the big bucks. To answer these type of questions. Forums are great and many on the forums know more than some of the attorneys but the attorney specializes in YOUR state's laws.

[OhioFiler]

I must agree. It is not the fresh start people brag about. That is just a term that people use to feel good about it and generate business, not a bad term, but not an accurate term. BK is a second chance to rebuild and try to do things better, but it is far from what I call a fresh start or anything fresh.

Here is the definition of Fresh Start as listed in the glossary @ US Courts . Anyone who wants to argue that BK doesn't provide a fresh start. is a marketing term or not accurate should read the Court's definition.

If you don't want to go to the link here it is:

[music12]

It's easy to prosecute someone for a bad check in GA and the police have nothing to do with it. Send them a certified letter, and 10 days later go to the magistrate office and fill out the paperwork. In GA, they WILL arrest you for bad checks if you do not make them good or miss your court date!

that's scary. glad i never wrote a bad check in my life...

[Bandit]

It could just be that the right people from payday did not get the notice of BK or the discharge. It is possible the wrong address was applied or they never got the letter.

Did you ask them?

I must have missed the bad check part somewhere, what does that have to do with this.

Chapter 7 is not the fresh start lawyers advertise. I have a whole other post about being denied credit as another downfall after bankruptcy discharge.

I must agree. It is not the fresh start people brag about. That is just a term that people use to feel good about it and generate business, not a bad term, but not an accurate term. BK is a second chance to rebuild and try to do things better, but it is far from what I call a fresh start or anything fresh.

[frogger]

Bell, please don't add unnecessary stress here. for the OP to be prosecuted for a bad check, someone would have to go to the police and report it, AND the police would have to think it's worth wasting time on it instead of finding real criminals - murderers, rapistst, etc. . come on! this angle isn't being mentioned here because it just isn't going to happen.

It's easy to prosecute someone for a bad check in GA and the police have nothing to do with it. Send them a certified letter, and 10 days later go to the magistrate office and fill out the paperwork. In GA, they WILL arrest you for bad checks if you do not make them good or miss your court date!

[music12]

Bell, please don't add unnecessary stress here. for the OP to be prosecuted for a bad check, someone would have to go to the police and report it, AND the police would have to think it's worth wasting time on it instead of finding real criminals - murderers, rapistst, etc. . come on! this angle isn't being mentioned here because it just isn't going to happen.

[Bell30656]

Another angle that isn't being mentioned... In some states an NSF check can cause you to be arrested!!! Check with your attorney. Just going with the Devil's Advocate, what if the collection agency isn't trying to collect the check but rather is trying to collect on the NSF check which may or may not have been discharged in the CH7.

Bad check laws vary from state to state. Check you state! Bankruptcy will not protect you from criminal prosecution, nor will it discharge criminal liability for restitution if ordered by the court, plus costs, fines, etc. Don't forget the cost of a bondsman, the embarrassment of arrest, etc.

This is something that you really need to ask your attorney. In my state, Georgia anyone that accepts a check knowing that funds are not available at the time it is written can not prosecute it as a bad check. Georgia also doesn't allow payday loans.

Did I mention: ASK YOUR ATTORNEY!

http://www.michigancollectionlawblog...aw_collec.html

[music12]

it's worth a phone call to your lawyer to find out the details. it could be that your lawyer would just call them and it would stop. nothing to lose by asking.

[moneytrouble]

I really don't want to spend any more money with this bankruptcy. Does it cost anything to get the bankruptcy court involved? Unless I have to, I don't want to go to court against these 2 companies, or whoever else may come along and start threatening me with court action. I certainly don't want to spend $500 an hour on a lawyer or more. I am already having a hard time getting the mortgage company to foreclose on my home that lost 40% of its value. Condo dues possibly can continue to mount against me after the discharge, even though I am not living there. Bankruptcy discharge to me is not a fresh start. It may be a relief of some debts, but you can still be left with large debt like condo dues(post discharge) and school loans, harassment from creditors, and unable to get credit(in my case).

[music12]

moneytrouble, it is NOT their legal right to file a claim and take you to court. it is utterly illegal of them to do so. if telling them to stop does not work, document everything. tell them if they don't stop you will file a motion in bk court to get sanctions and attorney's fees against them.

talk to the lawyer who did the bk for you. they may take them to court without your paying them because the bk code allows them to get their fees from the violating creditor. at least it's worth a phone call to the lawyer to find out.

if you really think they will file a claim against you, it may be best not to wait until they do that but to get the bk court to protect you before they do that.