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What If I Close My Bank Accounts Because of Payday Loans? – Cameron

“Dear Steve,

I have several pay day loans. I took out the loans so I could make a mortgage payment.

I had to make the payment or the mortgage company could have started foreclosure. I honestly want to repay the loans but can’t.

I’ll be trapped in the cycle of renewing the loans over and over again. When I took out the loans I signed a form saying I was not going to declare bankruptcy or close my bank account.

But, now I feel like I have to close my bank account to protect my small income from social security disability from the payday loan companies.

I feel like scum for doing this, but I think I may have to close the bank account before the loans are due. What will be the legal consequences given that I signed a document saying that I was not going to close the bank account. I’m in a financial mess and am trying to save enough bucks to pay an attorney to file bankruptcy.

Cameron”

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The Answer

 

Dear Cameron,

Yes, you are stuck in the gerbil wheel of payday loans. It just goes around and around. And I’m glad you are already considering bankruptcy. If you have not already found a local bankruptcy attorney then you should click here to find a local bankruptcy attorney you like.

It’s important to meet with the bankruptcy lawyer now so you can discuss the best way to handle these loans. The lawyer might just say to you that since you are moving ahead with bankruptcy he/she will deal with the payday loan folks after you close the accounts.

But once you do file bankruptcy, any bluster the payday lenders may have will be gone. The law will prevent them from chasing you and that will be that.

Your homework, go talk to a local bankruptcy attorney and report back.

Big Hug!

What If I Close My Bank Accounts Because of Payday Loans?   Cameron
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • End Payday Debt

    Great advice. Bankruptcy stinks, but sometimes it is the best option. Make sure you know your rights, and that you are not letting these guys push you around.

  • http://www.facebook.com/profile.php?id=100001187758855 End Payday Debt

    Great advice. Bankruptcy stinks, but sometimes it is the best option. Make sure you know your rights, and that you are not letting these guys push you around.

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