You can file bankruptcy for payday loans.  Your income and other factors will determine whether you can file a Chapter 7 bankruptcy.  Chapter 7 bankruptcy is straight liquidation which eliminates your debts.  If you are not eligible to file Chapter 7, you will need to file Chapter 13 bankruptcy.  Chapter 13 requires a plan (budget) for repayment of your creditors. When you file bankruptcy, you need to list all creditors with whom you have a balance owed. Your bankruptcy takes effect immediately upon being filed with the court.  The court sends notice to your creditors and that is why it is important to list all creditors (names and addresses).