Yes, payday loans are like any other unsecured debt, and you can discharge them in bankruptcy. We have clients that come in and have 6, 7, even 8 different payday loans. There is no way anyone could keep up with that many payday loans, when they are charging 300% or 500% interest.

If that is the main problem, you may want to file chapter 7 bankruptcy to just discharge or cancel the loans. Some clients cannot pay the full attorney fee for a chapter 7, so they choose to file chapter 13.

For those people that are under the median income for Texas, we can file them in a chapter 13 plan to pay $150 per month for 36 months (it's payroll deducted); any remaining debt including payday loans, medical debt, credit cards, etc. is cancelled or discharged, and our attorney fees are paid in full through the plan. We only need $346 (single person) or $376 (couple) to get the case started.

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