Payday loans can wreak havoc on your finances. These high-interest loans are insidiously destructive because they tend to affect the people who have the least amount of money to spare.
If you want to complete your bankruptcy process, you'll need to complete pre-bankruptcy credit counseling and pre-discharge debtor education. The pre-bankruptcy counseling must be completed before you can file your bankruptcy and the pre-discharge education must be completed before you receive your discharge approval.
Twenty-five years following the closure of a chain of schools owned by Wilfred American Educational Corporation, the Department of Education has decided to forgive the difficult-to-pay federal student loan debts that numerous students owe after attending the schools. Over 36,000 students -- primarily made up of low income earning, female immigrants -- attended the schools, racking up extensive, difficult-to-pay student debts.
Different types of debt will be treated differently during your Chapter 7 bankruptcy process. For example, secured debt will receive priority treatment compared to unsecured debt. Secured debt would be, for example, a home mortgage, which is secured by the home itself. If you default on your mortgage payments, the bank can take your home and it won't lose all of its investment. Unsecured debt would be, for example, credit cards.