Good morning, can consumer bankruptcy be declared by not paying out of the payday loop? I work for the lowest in the country, my husband only earns some extra money because he cannot take up a permanent job, because he has surgery.
Loop payday loans are a very common side effect of taking payday loans on a loan. Failure to borrow, always threatens with earlier or later consequences, there is no doubt about it.
Taking a payday loan to pay off previous payday loans means falling into a loop and you have to stop borrowing again immediately, because it will not help, but will only deepen the total amount of debt.
Payday loans and consumer bankruptcy
Can you declare consumer bankruptcy for debts in payday loans? or a debt loop? YES! However, the court may dismiss a petition for consumer bankruptcy, when the debtor having problems with payday loans led them recklessly or when the debtor did not take into account the consequences of borrowing.
If the court shows that you have intentionally insolvent you intentionally or through gross negligence, the court will reject your application for a declaration of consumer bankruptcy.
You must know that during bankruptcy proceedings, the court will investigate why you took more payday loans, if you had previous loans outstanding … if you can prove to the court that you did not have the means to live, then there is a good chance that the court will accept your application for consumer bankruptcy.
However, if it turns out that you took more payday loans, and you did not have to, because you had the means to live, then the court will not let you go bankrupt.
Consumer bankruptcy and the debt loop
What else you need to know is that in itself the desire to pay previous payday loans with a new payday payday is not a debtor’s circumstance here when considering a consumer bankruptcy petition. This is very good news for you.
If it were so that the majority of Poles who have payday loans could not declare consumer bankruptcy, total chaos would prevail in the world of finance …
… the court has dismissed the bankruptcy petition, e.g. when:
… the deliberate fault of the debtor will consist in the fact that the debtors incurred several payday loans, knowing that any day he would lose his job (source of income), and the money obtained from payday loans in this way will be transferred to third parties or carelessly squandered, and at the very end, when money from payday loans will run out, filing for consumer bankruptcy!
This is an example of a very gross recklessness and the court without thinking, will reject such a request for bankruptcy …
Answering your question: can you declare consumer bankruptcy while being in a debt loop (payday loans) ? YES – there is a chance to declare consumer bankruptcy even when you fell into a debt loop and repaid previous loans with subsequent loans.
The court will only want to examine the circumstances in which the payday loans were contracted, the general basis for taking them, and the court will also examine your financial morality …
What you need to focus on when completing your application for consumer bankruptcy is a good and true justification! consistent testimony at the bankruptcy hearing will also be important.
Neither payday loans nor the debt loop preclude the possibility of a consumer bankruptcy, so everything is in your hands now!