Ch. 7 and Cash Advance Loan Advice needed

[Krys]

My husband and I are filing for Ch. 7. We are not using a lawyer.

We have two cash advance loans that are about a month or two old, and after taking them out, we fell victim to fraudulent charges in our bank account (they are apparently owned by the same people). We closed our bank account and after some research learned that the two lenders are frequent abusers of Debit Fraud.

We've been trying to get them to give us an alternate way to pay them, a valid mailing address, anything to try and get this taken care of, but they are uncooperative. They're the type that call from another country claiming to be officers and threaten Jail....illegal in the US.

Either way, we had/have every intention to pay them, but they simply want our bank acct. info.

How do I deal with this when Filing Ch. 7? I know that recent Cash Advance loans are not dischargeable, but I'm trying to figure out what to do with this particular situation. We didn't take out the loan with the intention not to pay, so how will the court deal with this?

Thanks for any advice.

[dneil]

did you file bankruptcy, or are you planning to file?

[frogger]

How do I deal with this when Filing Ch. 7? I know that recent Cash Advance loans are not dischargeable, but I'm trying to figure out what to do with this particular situation. We didn't take out the loan with the intention not to pay, so how will the court deal with this?

Thanks for any advice.

List them on your Chapter 7 and file against them. The most that can happen is that they show up and contest it. Let the trustee sort it out.....

[Krys]

We are currently in the process of filling out the paperwork. Nothing has been sent in to the courts yet.

[Krys]

List them on your Chapter 7 and file against them. The most that can happen is that they show up and contest it. Let the trustee sort it out.....

Okay, thanks. Thats easier than I expected.

[free2breathe]

Cash advances too close to filing may not be dischargable if the creditor objects, but if enough time is put between the advance and filing, there are people who have them discharged all the time. The amount of the cash advances also comes into play.

[Krys]

Cash advances too close to filing may not be dischargable if the creditor objects, but if enough time is put between the advance and filing, there are people who have them discharged all the time. The amount of the cash advances also comes into play.

Yes, I actually knew that. Our issue wasn't so much that we'd end up paying it back, its that we dont know how to handle actually paying it back...lol. Since the co. is apparently not licensed in the US and wont work with us, I'm more worried about the fact that nothing we do (even filing) will help us here.

I was also concerned that when we go to file, the trustee is going to look at our info, see that we stopped paying it, and get suspicious about why. I know I'm being too hyper...he'll/she'll ask us questions and stuff to get it all cleared up. But I guess these are just the concerns that I was having. I dont want to look like I've committed fraud or anything.

[HHM]

Let's back up, how much are we talking about?

Note, the trustee could care less about the credit usage, the lenders of the money have a remedy in BK court (objection to discharge). The trustee will only want to know how you spent the money.

Keep in mind, the loans are only non-dischargeable if someone objects.

I am a little concerned about you filing Pro Se, usually if you have these sorts of issue, there are bound to be others and, don't take offense, it appears you haven't done sufficient homework to understand how BK works and the roles of the various players. That is a recipe for pro se disaster.

[Krys]

Let's back up, how much are we talking about?

Note, the trustee could care less about the credit usage, the lenders of the money have a remedy in BK court (objection to discharge). The trustee will only want to know how you spent the money.

Keep in mind, the loans are only non-dischargeable if someone objects.

I am a little concerned about you filing Pro Se, usually if you have these sorts of issue, there are bound to be others and, don't take offense, it appears you haven't done sufficient homework to understand how BK works and the roles of the various players. That is a recipe for pro se disaster.

Thanks for the input. I'm actually very confident in filing Pro Se, and have experienced help at hand.
The amt. of the loans is minimal, under $500. My concern comes in with the legality of the lenders, and in all honesty, my concern isn't so much the bankruptcy process (like I said) as much as it is about the inability of the bankruptcy process to help me get rid of/pay off these illegal lenders.

[free2breathe]

I may be mistaken, and someone will correct me if I'm wrong, but if they aren't legal in the US, yet they are lending to US customers, doesn't that inhibit their ability to collect in the first place?

[Krys]

I may be mistaken, and someone will correct me if I'm wrong, but if they aren't legal in the US, yet they are lending to US customers, doesn't that inhibit their ability to collect in the first place?

Yes it does. Which is the problem. They cant take advantage of their right to dispute in Bankruptcy court, but they also aren't held to it. I should have simply asked if anyone had ever dealt with this issue in the first place, because I dont think I made my original concern very clear. Filing Bankruptcy on a company that is illegal and what that entails, I guess. But I guess worst case scenario would be that I would still be dealing with their calls and harrassment during and after filing, because technically, there isn't anything a US court/judge/etc. can do to a company that doesn't have to play by their rules, right? ;)

[HHM]

Okay, I see...

Still list them in your BK.

And then report them to your state Attorney's General office.

[free2breathe]

Closing your account prevented them from being able to take more money. The next thing I would do is change my phone number. I know that's a pain, but it would be well worth getting these vultures off your back.

I would also do like HHM says and include them in the bk and then report them. Although I have read that they have a hard time prosecuting these types of offshore businesses, at least it might bring their name into the general public and warn others off. When you get past the filing and get to the financial management course, you'll be nodding your head all the way through the parts about cash advances ;)

[Krys]

Closing your account prevented them from being able to take more money. The next thing I would do is change my phone number. I know that's a pain, but it would be well worth getting these vultures off your back.

I would also do like HHM says and include them in the bk and then report them. Although I have read that they have a hard time prosecuting these types of offshore businesses, at least it might bring their name into the general public and warn others off. When you get past the filing and get to the financial management course, you'll be nodding your head all the way through the parts about cash advances ;)

Thanks again. We've already reported them to a number of places (BBB, FTC, and Attorney General). Lesson learned I guess. ;)

[sassiebaz]

I've dealt with these crazies! I guess a friend used me as a "referrence" and these people have called claiming to be from some US attorney office and that "my friend" is using me in a criminal way and blahblahblah. I told the to stick it up their Arses and don't ever call me again because I knew they were lying backstabbers...but didn't use that friendly term!