Wednesday, February 9, 2011

"But When I Got This Loan I Signed a Promise NOT to File Bankruptcy!"

I hear this sometimes from my clients who have loans with payday lenders or other smaller mom-n-pop type loan shops.  When my clients got their loans from these creditors, the clerk had them sign a document that says they promise not to file bankruptcy or include this particular loan in their bankruptcy.

It is NOT enforceable.  It's a scare tactic only.  Bankruptcy is extremely powerful.  It trumps all promises or contracts you may have previously made and gives you a clean break from those debts.  Don't let the fact that you might have signed a document like this prevent you from filing bankruptcy.

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