Payday loans are a trap for many Americans.  They offer a lure of a quick fix to a financial problem  but in reality they suck debtors deeper in debt.  Many of these loans charge an annual percentage rate (APR) of more than 500%.  Once you take the money, you are trapped.  Many loans require that you set up an ACH with your bank so that they get their weekly payments as soon as you get your paycheck.

If you are contemplating a bankruptcy, you should notify the lender and your bank to stop the ACH payments.  The bank will require that you provide a written stop pay notice to accomplish this. Stopping the payments to the payday loan lender will prevent that lender from receiving payments which may unfairly discriminate against other creditors that you are not currently paying.  Once the bankruptcy is filed, the Automatic Stay will prevent the creditor from taking any other steps to collect on the debt.