Can Payday Loans Be Included in Bankruptcy?

Payday loans are unsecured debt and can usually be discharged in bankruptcy.

If you’re facing difficult financial times, hire our expert bankruptcy lawyer from Jackson, MS to help you!

What Are Payday Loans?

Payday loans are loans that are made for a very short period of time with a very high-interest rate.

They are called payday loans because they are meant to give you cash just until payday, which is usually within a week to a month. Interest rates for payday loans are astronomical compared to other loan types.

Can Payday Loans Sue You or Take You to Court?

If you do not repay your loan, then the payday lender can sue you in state court for the balance that you owe.  

A payday loan is just like any other loan and can be enforced in Mississippi. If you do not pay the balance then you could receive a summons to court. If they successfully sue you, they could even garnish your wages or bank account.

How Do Payday Loans Work?

Payday loans are usually only for a few hundred dollars and you must repay them on your next payday.

The interest rates are very high and therefore these are some of the least desirable loans available. You should avoid payday loans if at all possible.

Are Payday Loans Bad?

Payday loans are certainly a bad financial decision because the interest rate is very high. This means you will pay a lot of interest on the loan. Thus, you should avoid payday loans at all cost.

Are Payday Loans Fixed or Variable?

Most payday loans have a very high fixed interest rate. It is also possible that the rate is variable but that would be very unusual.

However, you will need to read the contract to be certain.

Are Payday Loans Illegal in Mississippi?

Payday loans are legal in Mississippi, but some payday lenders have been prosecuted for illegal practices.

If you would like to discuss your options, please contact T.C. Rollins, a bankruptcy lawyer serving Jackson, MS.