The purpose of bankruptcy is to help borrowers get a fresh start when they become unable to pay their debts. However, there are certain checks on the process to ensure its not taken advantage of. For example, you cannot run up cash advance loans in atlanta considerable amount of debt and then immediately declare bankruptcy.
In the case of Pay Day loans, the general rule of thumb is that any loans for more than 750. 00 and that were taken out within 70 days before the bankruptcy are considered fraudulent. Any debts that are determined to be fraudulent by the bankruptcy court are generally non-dischargeable and cannot be included in a bankruptcy settlement. It is up to the PayDay loan company to prove that these loans were incurred after the cut off date. Your bankruptcy lawyer can further review your particular situation to determine if bankruptcy on payday loans is the best course of action.
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