When you file bankruptcy, it's a big move and you want to make sure that all possible forms of debt can be discharged. Several forms of debt are well-known to be off-limits, however. Taxes, back child support, and student loan debts are debts most filers won't be able to include. In some cases, filers fall victim to some bad information and end up regretting it later. Read on to learn more about payday lending and how not to get tricked.

Payday Lenders Are Convenient

When all else fails, those in financial straits may turn to payday lenders. These lenders use upcoming paychecks as a form of repayment for those who need small sums of money for emergencies. Undoubtedly, these lenders have a place in some consumer's financial plans. They may be the lender of last resort for those who need a car repaired, a medical need covered, or need to replace a major appliance. In most cases, the interest and penalties are reasonable as long as the applicant pays the loan and interest back by the following payday. Those in financial trouble, however, may be challenged to meet that payment.

Scare Tactics by Payday Lenders

Payday lenders can become aggressive and threatening when you fail to make good on the bank check left with the lender. In some cases, there is no money in the bank to cover the payday loan. Unfortunately, when these loan recipients try to declare bankruptcy because of their overall bad financial situation, they are told they cannot include a payday loan in the bankruptcy filing.

Payday Loans Are Bad Debts

Not only are payday loans predatory, but they are also unsecured and that word makes a world of difference for bankruptcy filers. Filers have two main categories of debts: unsecured and secured. Secured debt is secured by property like a home or vehicle. Unsecured debt has no property attached so no property is at stake when filing bankruptcy. Payday lenders have loan applicants sign a form that pledges the loan will be paid regardless of a bankruptcy filing. That promise, however, has no legal teeth. Payday loans are unsecured debt, plain and simple, and leaving a payday loan off your bankruptcy is a terrible idea.

When it comes to bankruptcy and what can and cannot be included, listen only to your bankruptcy lawyer and no one else. They know the law and can advise you so that you can make the best decision possible.

Contact a bankruptcy attorney service for more information.