payday loan and filing chap 7

[tyspruiel]

My husband and I are filing a chapter 7. He borrowed 500.00 dollars a few weeks ago from a payday loan and our attorney told us to just include this with our bk. We recently read on the agreement of the payday loan and it said that payday loans could not be included with a bk. We told our att. and he said to not worry about it. I dont understand, should we just go with what he is telling us? I dont want the check to get sent in. (I cant remember the name where bad checks are sent) or should we wait and see what happens with the bk. Also, we are including our vehicles in with the bk since we have been behind on them but we still will need a car. Would it make since to purchase another inexpensive vehicle before our bk or should we wait till after. If we wait till after and we have to surrender we will be without a vehicle?
Thanks in advance.

[HHM]

The check will get sent in no matter what, (creditors are typically allowed to let a check get dishonored, even after a BK is filed). but your attorney is right, you can include the debt in the BK.

Clauses in contracts that say, this debt cannot be included in a BK (or something similar) are simply non-enforcable. And you might want to speak with whatever agency oversees consumer issues in your state and see if such a clause is a violation of some kind and report them.

[Manzer]

I have a question about payday loans as well. I had one for $1,000 that was sent to a collections agency. Do I place this on schedule F of the bankruptcy forms?

[HHM]

I have a question about payday loans as well. I had one for $1,000 that was sent to a collections agency. Do I place this on schedule F of the bankruptcy forms?

Yes,

(note to other readers, Schedule F is the list of "Creditors Holding Unsecured Nonpriority Claims")