Credit Cards — a reason for filing bankruptcy
Credit cards are a big reason people have to file a bankruptcy. You receive your first credit card while in school after receiving your student loan or open your checking account. You tell your self I can do this, meaning use it pay it. Most of us do that and for many years and the limits on the cards will go up. Ten years latter now you have several cards and twenty thousand worth of charges. The creditors call you and offer all kinds of deals because your are just a good client.
As with life it seems all good things will end, You lose that high paying job, or even a cut in pay. Now the payments on the credit cards are slow or behind a month. the credit cards will raise the interest and minimum payments.
This is were the bankruptcy would come in and allow you to either discharge the debts or go into a plan and pay them back but a zero percent.
After doing this the credit cards will send you a new credit card with a low limit, and after several years you could be back to were you were before. So be careful you have to wait at least eight years to file another chapter 7.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
