I have three payday loans, Advance America, Idealgelt and Speedy Cash/Rapid Cash. I am in the process of filing a chapter 7 bankruptcy in the next couple months, and was wondering what would happen if I closed my checking account and stopped all payments to these payday companies? I have read many things online about what can happen to you if you stop making payments, such as jail time, lawsuits etc. If the payday companies are only going to turn over my balance to a collector, then that is fine, as I can discharge this on my bankruptcy. I just don’t want any judgements against me or getting arrested for non payment.
Top Hat Money Answer:
You should contact the loan providers and agree a payment schedule you can afford, this will be much safer than simply stopping paying. Stopping paying without agreeing it first will almost certainly lead to being pursued by a debt collection agency – although it will be a slow process and you may be able to come to an arrangement in the mean time.