Today I want to answer the question, I have these payday loans and they’re killing me. Can I discharge those in bankruptcy? Well, the short answer to that question is yes. Payday loans are fully dischargeable in bankruptcy. Even if they are being automatically deducted from your paycheck or deducted from your bank accounts or being deducted based upon a debit card, you can file bankruptcy, list them on the bankruptcy papers that you file with the court. They’ll have 60 days from the date you meet with the trustee to object to your bankruptcy case on the basis of fraud, which almost never happens, and then, on the 61st day after you meet with the trustee, the court will issue a discharge order, and you will be free from those payday loans.
Of course, the instant you file the bankruptcy case, the automatic stay of bankruptcy will prevent that payday loan creditor from taking any action to collect on that debt, but the bankruptcy process will protect you from the payday loans and will give you relief from those very expensive and onerous financial obligations.