If you are in debt trouble, it is awfully difficult to "borrow your way out of debt." I have people come in to see me in my Houston law office from surrounding towns like Cypress, Sugar Land, Katy and Stafford that have gotten themselves into a cycle of very-high interest rate debt by going to payday loan stores or title loan stores and taking out and renewing loans. I had a fellow contact our office just yesterday with $5500 in such loans.

Once you take out loans like this at interest rates that would make Tony Soprano blush, they are almost impossible to pay them off. You are supposed to pay them off from your next paycheck, but if you are living "paycheck to paycheck," your next paycheck is already spoken for. So you renew the loan by paying the interest or "renewal fee."

If you get trapped by these loans and can't get out, filing bankruptcy may be the only remaining option. They are discharged in bankruptcy like most other debts. If you don't have the money to pay for a Chapter 7 bankruptcy, you can either pay it out over time through our office, or consider filing Chapter 13. If you are working or otherwise have a regular source of income, we can start your case for a small down payment, and accept our fee through your plan, from the monthly payments that you pay to your Chapter 13 Trustee.

As the FTC says, payday loans are really, really costly cash. If you have to use them, pay them off quickly. If you find that you just cannot pay them off, contact my office and we will be happy to review your options with you.


J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
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