St. Louis Bankruptcy Lawyer: Debt Discharge Denials

 St. Louis Bankruptcy Lawyer: Discharge Denials

One important thing to be aware of if you’re struggling with debts is that if you incur debt after you first plan to file bankruptcy, that debt may not be dischargeable if you later file bankruptcy.   Bankruptcy was designed to give financial relief to those who incurred debt which they had planned to repay but due to illness, job layoffs, work hour reductions, other pay cuts, debt escalation due to accrued interest and other factors are no longer able to repay creditors on time. 

 

Someone thinking about filing Chapter 7 bankruptcy or Chapter 13 bankruptcy should not borrow money or use credit cards once they have made the decision to file bankruptcy unless it is a secured loan such as a car loan or a mortgage loan which the person plans to repay.  If you incur debt shortly before you file your  Chapter 7 bankruptcy or Chapter 13 bankruptcy case, particularly if the balance is several thousands of dollars of debt, the creditor may file a proceeding to deny discharge of that specific debt. 

 

An issue can exist if a creditor pursues denial of discharge of the debt .  Success depends on when the person first consulted with a bankruptcy attorney or bankruptcy lawyer about filing bankruptcy.  

 

Once a person decides to file bankruptcy he or she should stop using credit cards and not otherwise incur debt unless it is a car loan or mortgage loan which the person plans to repay and will be able to repay. 

St. Louis Bankruptcy Attorney: Bankruptcy a Last Resort

 

“St. Louis Bankruptcy Attorney: Bankruptcy as a Last Resort?”

 

Sometimes people have the notion that filing bankruptcy is their last resort.  Unfortunately, this type of thinking can lead people to take out payday loans, take 401(k) distributions, and pay one credit card with other credit card, all of which may lead to very undesirable results.  Also, people sometimes get many months behind on credit card payments before considering bankruptcy because they believe bankruptcy must be their last resort.

 

What many people don’t realize is that getting several months behind on multiple credit cards may devastating effects on their credit score.  By comparison, clients may actually see an increase in their credit score within one year of filing bankruptcy.

  

Sometimes people have the notion that they must be behind on credit card payments to file bankruptcy.  Bankrputcy lawyers know that this idea is quite untrue. 

 

The reality is that with decreased income or increased debt, people often get to the point where they just can’t repay all their creditors on time.  People who hit that financial wall, owe it to themselves to learn more about Chapter 7 bankruptcy and Chapter 13 bankruptcy and to learn if bankruptcy is the best debt relief option under their circumstances. St. Louis.