payday loans and chapter 7

[Lori W]

What is the name of your state?What is the name of your state? AL

I have a question - I filed chapter 7 two weeks ago, pro se. I had co-signed for a vehicle and found out the vehicle had been repossessed for non-payment (my lovely sister). Back in July, I took out a payday loan, well, I asked them to "roll over the loan," instead of rolling over the loan, they took $170.00 in charges, plus $360.00 (the loan was for $300). It screwed my checking account up to the point, that I ended up having to borrow from 3 different companies to fix that problem, as recent as August. I have a total of 6, 3 of which I found out are affiliated with the same lender. I had no intentions of filing bankruptcy, but my sister changed my credit circumstances tremendously. These lenders are continuing to call me, threatening to have me arrested for banking fraud and calling me a thief. I took these loans out over the internet, so, I never signed anything. I was never sent disclosures of what their APR would be - but found out that the APR on one loan of $300 is 1368.75%!! I find it hard to believe that it legal.
I wondered, with these loans being in the last 3 months, what are the chances these companies will really pursue legal action against me, and can they really have me arrested for banking fraud (on the advice of a lawyer, I closed the account 3 days before I filed bankruptcy to prevent them from getting anymore money from me). Thanks!

 

[Ladynred]

If they have been calling you since you filed for bankruptcy, then THEY are guilty of breaking FEDERAL law !!! As soon as you file and get a case number, the automatic stay goes into effect. That means that ALL collection activity MUST stop immediately. Hopefully you included all these payday loan companies in your BK and if you didn't, you'd better ammend your schedules ASAP. If you did include them, then tell them you have filed for bankruptcy, give them your case number and inform them you are pro se. Also tell them if they call you again you will file a motion for contempt against them with the BK court for violating the automatic stay.

That should stop them, and if not, file the motion for contempt and have the BK court smack 'em upside the head !

 

[kopes]

I included 5 payday loans in my BK. I have my 341 on Monday, so don't know if they will object or not. They have not called since I filed because of the automatic stay. Mine were taken out over the internet, too. They may object but so can any of the creditors. I have a lawyer, however, and he has taken care of all that for me. Just make sure they are included!

 

[Lori W]

Payday loans and chapter 7

Yes, but were you loans taken out within 3 months of filing? As I said, some of my loans were taken out 3 weeks before I filed bankruptcy... Most creditors have stopped calling me - just John Williams with County Bank of Delaware keeps calling me constantly. Said that if I was not represented by an attorney, then he could call me for whatever reason concerning the bankruptcy. I am a paralegal and worked in corporate bankruptcy for many years. I am just too embarrassed to ask the attorneys I work for in the 300 plus attorney lawfirm!!!

Thanks,

 

[JETX]

If they have been calling you since you filed for bankruptcy, then THEY are guilty of breaking FEDERAL law !!! As soon as you file and get a case number, the automatic stay goes into effect.

Actually, that is not true. The automatic stay goes into affect AFTER you give the creditor the court and case number.... not when you file.

 

[JETX]

Yes, but were you loans taken out within 3 months of filing? As I said, some of my loans were taken out 3 weeks before I filed bankruptcy

And of course, that could be a problem. The creditors have a right to challenge inclusion of their debts. It is also more likely that the Trustee will question your filing since you appear to have increased your debt load immediately prior to filing. You really can't determine if this is a problem or not until you hear from the assigned trustee.

just John Williams with County Bank of Delaware keeps calling me constantly. Said that if I was not represented by an attorney, then he could call me for whatever reason concerning the bankruptcy.

And of course that is wrong. The problem you will have now though (and it is likely what they are counting on) is as a Pro Se petitioner, you are likely ignorant on the process required of noticing the court of their violation and obtaining relief ("Motion for Contempt for Violation of Automatic Stay"). If you do know how and what to file, I am sure the court would be glad to 'educate' John Williams and County Bank of Delaware with a real nice 'contempt order'.
A fairly decent form for the motion can be found online at: http://www.lawyerassistant.com/freeforms/debtor_pleadings/motion_for_contempt.doc