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Are my payday loans dischargeable in bankruptcy? Have defaulted on three such loans. The lender keeps on telling me that their loans are 'special' and can't be included in bankruptcy. Is that true?

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No, it isn't true. Payday loans are no different from other unsecured loans/debts. They're dischargeable in Chapter 7 or 13 bankruptcy in the normal way. Marking them 'special' is just the lender's way of fooling you and making you pay as much as possible before you file your bankruptcy. Consult an experienced attorney for your bk filing though.

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Last Updated on: Fri, 8 Jun 2018