Bankruptcy Law
Chicago Payday Loans Attorney
Have you taken out a payday loan to cover urgent expenses but now find yourself trapped in a cycle of debt? Many Chicago residents find online payday loans an attractive solution to satisfy immediate financial needs. However, short repayment periods and high interests often trap them in a cycle of debt and make it difficult for them to escape.
At Wonais Law, LLC, we help people like you to break free from the cycle of payday loan debts. Call us today and discuss your situation with our Chicago payday loan attorney. We can help you to eliminate debt and remove your financial burden.
How Payday Loans Have Changed After New Regulations|
The Public Act brought the following changes to payday loan regulations in 2021 to protect the interests of consumers:
- Waiting period restriction between loans: It restricts taking out another payday loan for a certain period after paying off one. The waiting period varies from 2 to 14 days.
- Maximum loan amount restriction: It restricts you from borrowing more than a certain amount in a specific time. You cannot borrow more than $1,000 in a month or 25% of your gross income. However, in the case of a payday installment loan, the limit is 22.5% of your gross income.
- Loan transaction limit: You can only have a maximum of two payday loans at a time, regardless of whether they are regular or installment loans.
- Repayment plan restriction: It also restricts payday lenders from providing another loan if you are repaying your current payday loan under a repayment plan and for a further 14 days after completion of repayment.
- Interest limits: It puts a 36% cap on the annual percentage rate and prohibits exorbitant debt collection practices. Previously, payday loan companies used to charge exorbitant interest rates, such as 260% to 780% annually, as they didn’t conduct a bank account or credit check.
What Are Your Relief Options to Get Out of Payday Loan Debt?
The bankruptcy code provides you with two ways to get rid of payday loan debt:
- File for Chapter 7 and wipe out all your payday loan debt.
- File for Chapter 13 and repay your payday loan debt over a certain period without accruing interest.
Both options have their benefits. Therefore, your case determines which option would best protect your financial interests.
Features of Bankruptcy Chapter 7
- It can eliminate your entire payday loan debt and almost all other unsecured debts, such as past-due rent payments, credit card debt, and personal loans.
- It provides a fresh start but sells your non-exempt assets to pay off your creditors. Furthermore, It impacts your credit rating for up to 10 years.
Features of Bankruptcy Chapter 13
- It allows you to repay payday loan debt and all other debts in three to five years according to a structured repayment plan.
- It allows you to retain all your assets and dictate repayment terms. It means you would have the power to propose the repayment plan that best fits your needs and ability to repay.
It is important to note that your plan must meet specific criteria mandated by law to be approved by the bankruptcy court.
Why Choose Wonais Law, LLC in Chicago to Help With Your Payday Loan Debt?
Wonais Law, LLC is a debt relief agency that has helped thousands of Chicagoans overcome high-interest loans, including payday loan debt, and achieve financial freedom. Our Chicago payday loan attorney understands the complex structure of payday loans, the laws that come into play, and the challenges they pose for borrowers.
When you embark on your journey to a payday loan-free life with us, you’ll never feel left behind. We’ll promptly address all your questions throughout the process and keep you updated on the progress of your case.
Read how satisfied people from Chicago, IL, are after working with us:
If I can leave more stars I will. John is great with making sure I understand everything that is going on, I really appreciate how he’s always there to answer any questions I have. My chapter 7 is just about over and I have a 2nd chance of living life debt-free. – Tiffany
Contact us today to discuss your deteriorating financial situation. We provide free consultation. Our Chicago payday loan attorneys have extensive experience handling cases like yours. They can help you to get off the payday loan debt cycle.