Payday Loan

Can you file for bankruptcy on a payday title loan, cash loan or cash advance?

The answer is yes!
Many of you have been pushed into a payday title loan, cash loan, or a cash advance due to the state of the economy. Unfortunately, many of you may not know that a payday title loan, cash loan, or cash advance can have a very, very high rate of interest, along with other charges.

Some states allow you to be criminally prosecuted for a bad check written for a payday loan even though you are bankrupting the payday loan in a Chapter 7 bankruptcy liquidation or a Chapter 13 bankruptcy payment plan. It is our understanding that in Tennessee you will NOT be criminally prosecuted on a bad check written for a payday loan. Thus, you can file a Chapter 7 bankruptcy liquidation or a Chapter 13 bankruptcy payment plan on it in Tennessee without fear of being prosecuted. This can be wiped out completely in a Chapter 7 bankruptcy liquidation and reduced by as much as 90% in a Chapter 13 bankruptcy payment plan.

Cash Loan or Cash Advance

A cash loan and a cash advance are usually unsecured. An unsecured cash loan or cash advance means that no property has been put up as security for the repayment of the loan. If your cash advance is unsecured, the loan can be completely wiped out in a Chapter 7 bankruptcy liquidation plan and reduced by as much as 90% in a Chapter 13 liquidation plan.

^*For those who qualify under federal law.