Can I discharge Payday loans and cash advances in a Florida Bankruptcy?
The answer depends on the facts. It depends on how long ago the advance or loan was issued in relation to when you filed. It depends on whether or not you have made payments towards the debt. In addition, the court or Trustee may want to know what the debtor's intent was when he or she took out the advance or loan.
If the debtor had no intentions of ever paying that back, the Trustee may assume the debtor acted fraudulently and could dismiss the entire bankruptcy case. The bankruptcy code does provide that if a debtor takes out more than $750 in cash advances within 70 days of filing the petition, that debt will be presumed nondischargeable.
Therefore, if a debtor has taken out a large advance recently, it may be in their best interest to wait to file for bankruptcy unless filing sooner is a must.
Greg Gilbert
Keith Maynard
