As the economic downturn took hold of the country, many Riverside, Orange and Los Angeles County homeowners sought payday loans to help them manage bills. Payday loans are a bad idea. If an individual needs a few hundred dollars unexpectedly, he or she would be better off borrowing the money from a relative or friend. The interest rate on a Payday loan can be as high as 300 to 400 percent.
“A vicious circle begins of needing to borrow more each week just to pay back the original loan,” says Carson-based bankruptcy attorney Brad Weil.
Borrowers may wonder if payday loans are dischargeable in Chapter 7 or Chapter 13 bankruptcy and in fact, they are. The loans are unsecured debts and do not have to be paid back. “Bankruptcy can halt that perpetual borrowing cycle and get the borrower back on track,” says Weil, “and if the borrower is also in danger of losing their house to foreclosure, bankruptcy can stop the bank from proceeding with foreclosure. Many homeowners don’t know all the remedies available to them that will save their home, that’s where my office can help.”
If you’re a homeowner facing foreclosure, contact the Law Offices of Brad Weil at frontdesk@bradweillaw.com or 310-515-7776 to set up your appointment today. Attorney Weil can help you navigate the complex legal process and work out a solution that best fits your needs.
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