How to Get Rid of Pay Day Loans
Jul 26, 2021
PAYOFF ASAP
Obviously, the best course of action is to pay off the payday loan as soon as possible. With insanely high interest rates the amount of the loan will continue to grow until it is paid off. Unfortunately, many people are not able to pay off the loans, so they go unpaid. The companies can then sue you, get a money judgment against you and possibly garnish your wages. So, what other options are out there?
WISCONSIN SECTION 128
A Wisconsin Section 128 is a great way to stop the interest from accumulating and payoff any high interest debt, including payday loans. A Wisconsin Section 128 is a debt repayment program through the Wisconsin State Court System. You can choose what debts you put into the repayment program and repay the debts at ZERO percent interest over a three-year period. The creditors listed in your Section 128 are not able to garnish your wages. If repaying your debt, even at zero percent interest, is not an option for you financially; then you could look at bankruptcy.
BANKRUPTCY
Chapter 7 Bankruptcy can get rid of your unsecured debt. Most payday loans are unsecured and therefore can be discharged in a Chapter 7 Bankruptcy. Please note, if payday loans are proven to be fraudulent, they are not able to be discharged in bankruptcy. For payday loans to be considered fraudulent by the bankruptcy court, the payday loan companies would have to prove a large amount of payday loans were taken out with the intention of filing bankruptcy shortly after. Most people are not attempting to commit fraud; they are just trying to get out of debt. An experienced bankruptcy attorney can help you.
FREE CONSULTS
No one plans to get into more debt than they can repay. Unfortunately, life does not always go as planned. If you need guidance on what debt relief option would be best for your specific circumstance, please contact our office. Pedersen Law Office, LLC offers free consultations in all our areas of practice. We will meet with you personally to help you figure out what the best option is for your situation.
