In fact, anyone who tries to collect those discharged debts from you after the bankruptcy is breaking the law. The courts are very serious when they enter your discharge order, stating that the debts are no longer valid against you. You now control your own actions, at least where these debts are concerned. Thus outs you on a stronger legal position than you might have been in for quite some time. Having a debt discharged in bankruptcy gives you the legal right not to pay it, but that may also give rise to some moral question. Just because your bankruptcy freed you from the legal responsibility to pay a debt, it doesn’t mean that you can’t pay the debt if you want to. You know, there are some people who take advantage of their privilege on their debts. Let us say, they will take payday loan and won’t pay the lender. When the lender asks for payment they will just declare that they are bankrupt. So, they will be free from the debt and the lender will have no power to ask payment. The lender here will be disgusted because it’s their business and could be cause of losing their business.
Most states have usury laws designed to protect people from modern day “moneychangers.” These laws prohibit lending money at an interest rate in excess of a certain statutory maximum. This is a “usury limit.” rates vary quite a bit from state to state, but they average about sixteen percent maximum. Why then, do some “predatory lenders” get away with charging twenty five percent, thirty five percent, even forty five percent in states that have much lower limits? We should thank the Federal government, with its special interest driven law making system. Well usury law has been abolished in some states. This is for the protection of the people for paying an interest that is against the law or against the conscience. Since payday loan has great demand on most people, government has to protect all of them. Or else they will pay interest that is not regulated by law or the lenders will just impose huge interest anytime they want. And those who rely help of money lenders will find hard time on adjusting and coping up with their financial problem. Fortunately, there are some people who suffer bankruptcy due to huge payment of interest on payday loans and because they find it hard to pay the interest and the penalty in case of late payments.