Yes, bankruptcy courts typically treat payday loans like a credit card or any other unsecured debt, and will allow it to be fully discharged in Chapter 7.
As with running up a credit card balance, you may encounter objections from the creditor if you’ve made use of payday loans in the last 30-90 days.
Debts older than 90 days are not usually objected to.
If you provided a post-dated check to the payday lender in exchange for the loan, the lender may cash it in violation of the automatic stay.
If that happens, notify the bankruptcy court. You may be able to recover the funds from the payday lender.
Bankruptcy can be complicated, but an experienced bankruptcy attorney can keep it simple for you.
Call the bankruptcy attorneys at Zelenitz, Shapiro & D’Agostino today at 718-599-1111 for a free consultation.