Consumers regularly turn to an unsecured quick cash advance when they have a history of adverse credit. An absence of credit scoring means that a same day payday loan provides a convenient way to borrow money quickly to meet an urgent financial need. Although a short term loan, many customers find it difficult to repay the money they owe at month end. Paying back a loan for $1,000 and any accrued interest (typically $250) can prove beyond many people. However, it is possible to get out of payday loan debt with a debt free solution or secured consolidation loan.
Filing for Chapter 7 Bankruptcy to Get Out of Payday Loan Debt
Filing bankruptcy under chapter 7 provides a way of eliminating unsecured debt with full court protection in just 4 months. The basic eligibility requirements are that the applicant's income should be below the state median and that any non-exempt assets should to be handed over to the trustee. The cost of hiring a bankruptcy attorney means that it will only be suitable if other unsecured debts (unpaid credit card balances, unsecured loans, medical bills etc) can be included in the arrangement. Filing chapter 7 bankruptcy will show on a personal credit report for 10 years.
