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.
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