I just took out pay day loans. Should I wait 90 days to file?
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It is 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 are "cheating" - wracking up debt knowing that you could just get rid of it in bankruptcy right after.
Written by Attorney Jonathan Petts.
Updated July 22, 2020
It is 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 are "cheating" - wracking up debt knowing that you could just get rid of it in bankruptcy right after.
You do not NEED to wait to file, though. If you are 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.
