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I Just Took Out Payday Loans. Should I Wait 90 Days To File Bankruptcy?

1 minute read Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools, like our bankruptcy filing tool. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool


In a Nutshell

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 Jonathan Petts
Updated April 19, 2022


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.



Written By:

Jonathan Petts

LinkedIn

Jonathan Petts has over 10 years of experience in bankruptcy and is co-founder and CEO of Upsolve. Attorney Petts has an LLM in Bankruptcy from St. John's University, clerked for two federal bankruptcy judges, and worked at two top New York City law firms specializing in bankrupt... read more about Jonathan Petts

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