I have online payday loans. Can they be discharged if I file bankruptcy?

Yes, online payday loans can be discharged in bankruptcy, assuming that you qualify to file bankruptcy.

Online payday loans are unsecured debts, and can be discharged in bankruptcy just like credit card debt, bank loans, medical debt, broken leases on apartments and cell phones, and other unsecured debt.

If you have bogus online payday loans that you cannot pay, by all means dispute them, don't pay them. We have clients that get phone calls from "fake payday loan" debt collectors trying to get them to pay, and it is just ridiculous. They threaten them with arrest and having the sheriff come immediately and serve them with a lawsuit, it just doesn't work like that. You don't need to file bankruptcy on scam artists.

But if you have payday loans that you owe and you cannot pay, and/or other debt problems and you live in the Houston, Texas area or surrounding counties, call our office at 713-772-8037 and make an appointment to meet with us.

We will review your situation at no charge to determine if filing a bankruptcy case will solve your debt problems. You can either seek to cancel your debts in chapter 7, or at least pay them at a level that you can afford in chapter 13, depending upon your circumstances. But just to be clear: payday loans, including online payday loans, can be discharged in bankruptcy just like any other unsecured debt.

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