I Just Took Out Payday Loans. Should I Wait 90 Days To File Bankruptcy?
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It's a good idea to wait at least 90 days to file after taking out payday loans or making any substantial purchases. This is because these types of transactions can make a trustee or judge suspicious and less likely to approve your bankruptcy. It looks like you're "cheating" — wracking up debt knowing that you could just get rid of it in bankruptcy right after.
Written by Attorney Jonathan Petts.
Updated November 11, 2021
If you've recently taken out a payday loan or made any substantial purchase, it's a good idea to wait at least 90 days to file your bankruptcy case. This is because these types of transactions can make a trustee or judge suspicious that you're wracking up debt because you know you can just get rid of it in bankruptcy right after.
That said, you don't NEED to wait to file. If you're able to explain the cash advance or transaction, and if you really need to file now instead of waiting, the transaction shouldn't keep you from getting a discharge.
