Recently I met with a young couple who were caught up in the vicious payday loan cycle. They borrowed $200 from a payday loan company or check advance company and when payday arrived, they didn’t have the money to payoff the loan. So they paid $30.00 to renew the loan another two weeks. They did this with 3 or 4 different payday loan companies over several months. Their intentions were honest. They needed money to pay the electric bill or rent or buy groceries but were never going to be able to repay these loans. So our office was able to help them by filing them in a chapter 13 bankruptcy. We consolidated all their debts including the payday loans into one easy payment to the chapter 13 trustee. I also told this young couple to close the bank account on which the checks were written to the payday loan companies. Sometimes these companies will try to deposit these checks knowing that the borrower doesn’t have the money to cover it. The hope by the payday loan company is that the borrower’s bank will honor the check and put the borrower into overdraft. So the best way to avoid this from happening is to simply close the bank account on which the checks were written. In Tennessee, it’s not a violation of the worthless check or bad check law to write a check to a payday lender when there isn’t money in the borrower’s account to cover the check. It isn’t a violation to close the account either. If you’re caught up in this vicious payday loan cycle, please call us. We can help you break this cycle and put you on the road to a fresh financial start.