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How Pawn Shop Loans to Treating Bankruptcy?

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The pawn shop loans business is booming. But pawn shop are not just doing business with the working poor. Instead, middle and upper income borrowers are taking their valuables to pawn shops to generate the cash money needed for mortgage payments, the vehicle pawn shop loans, school tuition and even essentials like food and clothing.

Pawn industry trade magazines have taken notice of this trend and more and more pawn shop loans brokers are opening locations in high end shopping centers. Specialty pawn shop stores now look more like jewelry stores than merchandise filled pawn shops and they openly solicit wealthy customers.

In Atlanta, there is a pawn shop loans store called (Happy Hocker) that specializes in purpose precious like: watches and gold and jewelry  advertises itself as the pawn shops for the famous and rich.

The Bankruptcy law lawyers are seeing Also These well heeled borrowers. While in 2005

Many of These the high income ratio the Bankruptcy filers have Pledged into pawns collectable, electronics, jewelry, watches and family heirlooms in an effort to raise cash in pawn shop loans. Scared, embarrassed and unsure about exactly how pawn shop loans stores work, These pawns unnecessarily the risk borrowers Their property if they are not alerts to time deadlines and the default provisions.

In generality cases, the thing the risk to a pawn shop loans the borrower arises from the defaults provisions of the pawn shop loans. The Generally, upon defaults, title to the collateral pawned transfers to the pawn shop loans broker.

Therefore, in general, if a the borrower is thinking about filings for bankruptcy, he Should His case files before the pawns loan goes into defaults or actually before the title passes.

Although the Bankruptcy laws are US Federal laws and applicable in every US state, pawn shop loans laws will Vary from state to state. the General to States Bankruptcy Court will looks to local laws to the Determine When a pawns loan is in default.

The local laws will Also Sept. out the rules about what a the borrowers needs to do in order to keep His pawn shop loans out of default Usually mean this tendering an interest payment.


In the most states, a the Chapter 13 filings while the pawns transactions is still current will preserve the debtor is ownership in the property, pawn shop loans.

The automatic Keep in the Bankruptcy will the Prevent the pawn shop loans broker from selling the property and the Chapter 13 plans will give the the borrowers an opportunity to pay back the pawns loan as a secured debt. The the borrowers may not get a possession of His property right away, but at least he knows That the property is safe.

In the contrast Chapter 13 may not be as much Support after the title has passed. In this situation, the pawn shop loans merchandise does not become part of the debtor's the Bankruptcy estate and Therefore the loan is not included in the plans. There are some the arguments That a clever lawyer may using pawned to bring the property back into the the Bankruptcy estate, but this the Process is an uphill battle.

As a the rule, Therefore, Should try to pawns borrowers Their file is Chapter 13 cases before Their pawns transactions go into defaults. At a minimum the pawns the borrowers Should seek legal counsel prior to defaults to learn more about the applicable state law and the local the Bankruptcy procedures That deal with pawn shop loans.


We are Practiced the consumer the Bankruptcy law in the state of Atlanta, and Georgia for over the 20th years. In the Additions to representing debtors in Chapter 7 and Chapter 13 the Bankruptcy cases, in pawn shop loans we serves as a continuing education Instructors, assisting other law lawyers learn about new the Bankruptcy law developments and practice the management skills.


changes to the nation is the Bankruptcy laws Generally the require wealthy debtors to file the Chapter 13, pawn shop loans there Has Been a the steady up upward climb in the number of the Bankruptcy filings by families who have the Household earnings of almost $ 100,000 dollar.