Cash Advances

[Hileman]

I have 2 cash advances that have been rewritten as recently as this weekend. I was toying with the idea of filing but until today I had not made up my mind. I am worried it will be looked on as fraud if I go and file right after I wrote them. I have been writing them for about 9 months though. It is a very long term thing.

[StaciMM]

If you file now, a large part of those advances will probably end up not being discharged.

For now, stop living on credit & start researching bankruptcy so you can determine if it is something you should pursue. You will need to have at least 3 months pass, and if the amounts were large, would be best to wait alot longer before filing. Use that time to get your finances in order as much as you can.

[Hileman]

Everything else I have is more than 6 months past due. I have to write the cash advances or they come after me for fraud. It is a bad check. I have let them go before and I can not deal with the stress of it. I am so confused.

[StaciMM]

If you have transactions-especially cash advances and/or balance transfers-when you are already planning to file BK, that is credit card fraud. (Since you have no intent of paying them back.) Bankruptcy will not clear those out, unless all the creditors involved lay down and do nothing. (Not worth counting on IMO.)

[Hileman]

These are not cash advances off credit cards. They are pay roll advances where I go and write them a check for 575 and they give me 500 cash. I understand what you mean about the credit card fraud, and I am worried of getting myself in trouble with these too, but there is no way I can jsut go and pay them off, and if I do not pay them, then it is check fraud for not paying the check I write to them. When it started there was no reason to think I could not pay them off, but they are horrid things and they are what got me in trouble.

[StaciMM]

Talk to the attorney about that, before you pay him anything.

[Minnymouth]

Sounds like you have gotten yourself into the "snowball payday loan" problem of living off next weeks paycheck.
You need to talk to an attorney and see what you can do and cannot do................ as this could prove to be a serious problem for you, a lot worse than bankruptcy...
Or find a friend or relative to help you pay this off immediately (because it is considered writing a bad check - if you left a post dated check with them)

Keep us posted

[keepmine]

Hi guys! Can I play too?

Thought I'd try and help with this one. It's complicated but at the end of the day, a postdated check is covered under the UCC. Since both parties know in advance the check is no good, it's considered an extension of credit and not fraud.
Here's a decent article that gives the specific site. For sure. let your bk lawyer know what's happening and stop taking these advances but, you're not bouncing checks. You may well have problems filing for bk and you've taken these out in the insolvency period but, you're not going to jail.

http://credit.about.com/od/selfhelpcounseling/a/071404.htm

"Criminal bad check laws do not usually include post-dated checks. Furthermore these can be discharged in bankruptcy. At the time you write these checks, the lender knows they are bad because they are post dated. They therefore are not generally considered "bad checks" but "bad debts", and ordinary debt laws apply. So, at least from a legal point of view, skipping out on the payday lender is no worse than skipping out on any other lender...."



and:

" Bad Check Laws - Section 3-104(2)(b) of the UCC, defines a check as "a draft drawn on a bank and payable on demand." A postdated check, since it is not payable on demand, does not satisfy this demand. Consequently, it has generally been held by most states that the giving of a post-dated check does not constitute a present fraud nor is it within the scope of the bad check laws. "

[StaciMM]

Very good info! Would probably be a good idea to close the bank account involved...

[Hileman]

Keepmine- Thank you so much for that information. It really makes me feel better.


I have an appt tomorrow morning (3/2/06) to talk with an atty about my options. I am terrified, but I have to find out what options we have. When I am there talking to him, I will find out about closeing my bank account.