Can I legally cancel a loan contract?

Not really, unless there is a clause, in the contract, that allows this.

Read the fine print.

Some place let you cancel the loan within a certain timeframe…...

You have to look at the terms of the contract – as stated, there may be a built-in mechanism for either a cancellation or readjustment of some sort.

Note also that if the terms are highly prejudicial to you, you might be able to get relief under new laws and regulations passed/under works since the financial debacle. The new federal consumer financial protection agency is a good place to look to examine your rights.

If the rate is unreasonably high you might have a case of usury and have some recourse.

You ability to cancel this loan depends upon the terms you agreed to when you signed up.

That being said. In general the whole credit qualification game is often used to lure people in to signing up for more than they can realistically afford. Always remember that the sales guy is not there to do you a favor, he is there to make money.

Welcome to Fluther.

This could be interesting.

Have you learned anything – anything at all – about how you got to bankruptcy in the first place? It doesn’t appear so, if you “impulsively” signed up for a loan that will cost you over ⅓ of your net income for any significant length of time. How did you come to do that, and how did you even qualify to do that? At least you know the procedure for declaring bankruptcy, which may be a plus for you here.

You almost certainly can’t “avoid” the issue. That is, if the contract were for, say, a new car or some other collateral purchase, for example, then you could be sued for “specific performance”. That is, you could be sued to “do what you contracted to do”. So you can’t ignore this.

If the loan were something like a line of credit unfathomable, in this case then you could just avoid tapping it. No loan is extended in that case, and no repayments need apply.

As others have already said, you need to consult the loan documents themselves. Two weeks after the fact it’s unlikely that any cancellation privileges still apply, but read the loan papers. If you’re signed up to purchase some form of collateral and can’t get out of it, then your next best option is to find a way to sell it for what you can get for it (probably considerably less than you’ve signed up to pay) and cut your losses, even if you are probably underwater on the loan, or will be when you take delivery of whatever you’ve agreed to buy. Do it anyway, because you can’t afford this kind of drain for long. No one can, even someone who knows how to handle money.

Others have already suggested legal avenues, which may also apply. This whole thing seems fishy to me: you’re just now coming out of bankruptcy and you have somehow managed to qualify for a loan that no reputable lender would ever make. Did you lie on the application?

The other thing that may possibly be an ‘out’ for you is if the vendor / seller / lender somehow defaults or misses a delivery date, then you may have a clause that allows you to cancel for their non-performance.

But it seems to me that what you really need is a guardian.

If you have already received the money, give it back. If there has been no disbursement, then I don’t see why you can’t just cancel it. Very few loans have a non cancellation clause.

You generally have 3 days after signing to cancel a contract. If the contract was for something custom ordered, you’re pretty much out of luck. If you have taken delivery of something, check the contract and see what the return policy is. You may still have to end up paying something for the difference between the actual cost, and the return cost, and you won’t have the item, but it will be less than paying the full thing.