Arlington Payday Loans Lawyer

Bankruptcy Lawyers in Tarrant County Helping Ease the Burden of Payday Loans

If you have ever experienced serious financial hardship, you have probably searched the internet for options regarding getting cash fast. In your searches, you have most likely come across offers that promise "Cash Now!" or "Cash in Your Account as Soon as Tomorrow!" Even if you are not struggling, you might see such ads on television or while scrolling through your social media feed. For a person who is not currently overwhelmed by financial obligations, it is usually pretty easy to skip past these offers, but for someone who needs to pay an important bill, a payday loan might feel necessary.

Unfortunately, payday loans are generally structured in such a way that make them nearly impossible to get out from under, and you might quickly find yourself buried by multiple obligations to several different payday lenders. At Acker Warren P.C., we work closely with individuals and families who need relief from payday loan debt in North Texas. In most cases, filing for bankruptcy under Chapter 7 of the Bankruptcy Code is the easiest and most affordable way to resolve payday loan debt, and we are here to help you get the relief you deserve.

The Vicious Cycle of Payday Loans

Loans that are known as "payday loans" are usually short-term, small-dollar-amount loans with extremely high interest rates. They take their name from the intended repayment period, which is usually set for the debtor's next payday. Most payday loans are issued for less than $1,000, and they are given to desperate individuals who have no other way to pay their rent or utility bills until they get paid again. At least, that is the debtor's intention when they take out a payday loan.

In reality, those who are in a situation to need a payday loan often do not make enough in their paycheck to cover a lump-sum loan repayment when payday comes. When this happens, the lender might offer a revolving loan, in which they give another loan to pay back the first loan—for a fee, of course—but the fee does not count toward the principal or interest on the original loan. Alternatively, the lender might offer an installment plan for repayment, with interest rates that might exceed 600%! In fact, the average interest rate for payday loans across the country is 391%, according to the Consumer Financial Protection Bureau.

Break the Cycle

Clearly, payday loans are incredibly expensive, requiring borrowers to pay back much more than they originally borrowed. Those who use them generally do so only as a last resort, but once they are caught in the cycle, it can be extremely difficult to get back out again.

There is good news, however. Payday loans are considered unsecured debts, which means that there is no collateral involved, such as a home or vehicle. Unsecured debts are generally dischargeable through Chapter 7 bankruptcy. Even better, as soon as you file for Chapter 7 bankruptcy, all collection efforts by your creditors must stop, including any and all payday lenders. The attorneys at Acker Warren P.C. have more than 20 years of experience helping our clients seek debt relief through bankruptcy, and we are ready to help with your situation as well.

Call 817-752-9033 for a Free Consultation

To learn more about our firm and how we can help you break the payday loan cycle, contact our office. Schedule your free consultation with a member of our team by calling 817-752-9033 today. We look forward to assisting you in securing the fresh start you deserve. Acker Warren P.C. serves clients throughout North Texas, including in Arlington, Fort Worth, Parker, Wise, Dallas County, Parker County, and Tarrant County.