Pay day loan businesses provide a short-term loan of some hundred bucks which will be paid back in the borrower’s next payday. To search for the loan the borrower frequently writes a post-dated check to your loan provider. Often the pay day loan lender will demand a declaration that the debtor just isn’t considering bankruptcy, and, often, that the debtor will likely not register bankruptcy as time goes by.
Guarantees never to register bankruptcy aren’t contract that is enforceable and generally are considered void against general general general public policy.
But, if somebody falsely represents she is not contemplating bankruptcy to obtain a loan, the debt may be determined non-dischargeable in bankruptcy and the person may have committed a criminal act of stealing by obtaining the loan under false pretenses that he or.
Many people stress they are unable to pay the post-dated check that they will face a criminal bad check charge when. With some slim exceptions, being struggling to spend the cash advance check is certainly not an act that is criminal. It’s important to remember that the post-dated check may nevertheless be presented for re payment even after the bankruptcy is filed, leading to significant bank costs. Many courts handling the problem have actually stated that the presentment regarding the post-dated check does maybe not break the automated stay conditions of this Bankruptcy Bode. Continua a leggere