Pay Day Loans and Bankruptcy in Utah
Utah Bankruptcy Attorneys – Salt Lake City, Provo
In recent years in Utah, pay day loan centers have cropped up all over the state. Utah has less regulations on pay day loan companies than many other states. The Utah State Legislature has been considering tightening the regulations on these types of companies for the past few years but has taken minimal steps compared to other states in stemming the tide of short term lending in Utah. Some cities have enacted zoning ordinances to prevent multiple pay day lenders from setting up multiple shops in town. The pay day loan stores have been successful in marketing to financially struggling individuals and families throughout the state. As a result, many people in Utah have fallen into the web of short term loans and now find themselves even more in debt with looming interest rates that make it almost impossible to pay off their pay day loan obligations. For many of these individuals, filing for bankruptcy in Utah is their best or only option to get a fresh financial start and rid themselves of a pay day loan nightmare.
At Salcido Law Firm, we have helped numerous individuals and families get a start fresh after taking on more debt than they can pay from pay day loan stores, credit card companies, or other lenders with extremely high interest rates.
Alternatives to Pay Day Loans
For many people struggling to make monthly mortgage payments, rent, utilities, food, or other necessities, there are alternatives in Utah to pay day loans and other risky short term lending. People sometimes do not realize that credit unions and banks often provide short term loans that are more regulated and carry less risk than the typical pay day loan store. While some of the bigger banks such as Wells Fargo and Bank of America are not yet offering small and short term loans, many other regional banks are. A search of your local banks may help you find the funding you may require. Credit unions are often the best alternative to pay day loans and generally provide more options than banks. Credit unions are often more community organized and more flexible in their lending requirements.
Recently, the FDIC tested a program in which short term loans of up to $2,500.00 were given for a period of up to 90 days. This program may be making a comeback and could be a great alternative to the typical pay day loan structure. Over sight of the FDIC short term loan programs provide more security to the average consumer.
Discharging Loans in Bankruptcy
Like other consumer debt, pay day loans whether secured or unsecured are generally dischargeable in bankruptcy. In fact, more consumers buried in pay day loan debt are looking to bankruptcy as a means of getting on top again. Many pay day loan institutions will aggressively pursue collections actions against its customers. To stop pay day creditors from collecting and harassing you, speak to a Utah bankruptcy attorney today.
Free Consultation with a Bankruptcy Lawyer
At Salcido Law Firm, our team of highly skilled and experienced bankruptcy attorneys can help you shed your ever increasing consumer debt. If you feel you have dug yourself a hole with pay day lenders, credit card companies, and/or other loans, we can help. Call us to find out what your bankruptcy and debt relief options are today. You can speak with one of our Utah consumer lawyers any time by calling 801.413.1753.