Legal Question in Bankruptcy in Nevada

Payday Loan Check Cashed after Bankruptcy Filed

When your Bankruptcy Petition is filed, the Clerks' office issues an Order to prevent future collection activity. This would include cashing a post-dated or electronic check given in exchange for a "payday loan." Unfortunately, until the creditor actually knew about your bankruptcy by receiving a copy of your bankruptcy paperwork (which would have taken more than one week for the court to process), it will be difficult to prove that the creditor violated the Court Order intentionally, even if you told them you filed Bankruptcy. (Unfortunately, many people claim they filed bankruptcy to stop collection activity when they really haven't, making it more difficult for those who actually do file.) It still may be possible to get your money back, but you must file a motion with the Court. Check with your Trustee first, because he or she may want to share this money with your other creditors instead of returning it to you.

Once again, this is an example of why filing Bankruptcy is not a do-it-yourself process. It is more than just filling out the paperwork or consulting a paralegal. You "forget" what might be out there to bite you and when it does, discover that the cost can be unexpectedly high. Experience does matter!