Because of the financial strain Covid 19 has put on so many people, the Law Firm of William H. Lively, Jr. is lowering the up front costs for filing Chapter 13 bankruptcy cases for new clients. If you need to file a Chapter 13 bankruptcy and cannot come up with a large down payment to hire an attorney, contact our office–we can help get you protected for less.

Late credit card payments can damage personal credit

Credit card debt can be a source of difficulty and anxiety for people in Texas. Those who are dealing with financial problems might even miss payments. Ideally, for the sake of the person’s credit rating, he or she should continue to make at least the minimum payments on the cards. Sometimes that isn’t possible though, and so payments are missed. Failure to make credit card payments has different, increasing consequences depending on how long the payment is behind.

A payment on a credit card is considered late once it is more than 30 days past due. Credit bureaus typically categorize late payments as between 30 and 59 days, 60 and 89 days, 90 and 119 days, 120 and 149 days, 150 and 179 days or 180 days or more. When a payment is 30 days late, the credit card company will typically charge a late fee. Sometimes, these late fees can be waived if the person calls the company and explains the situation. The late payment will likely be reported to the credit bureaus though.

When credit card payments are 60 days late, the credit card company is likely to increase the interest rate on the card. Penalty APRs might be up to 29.99 percent, and they might last for six months or more. When a payment is 90 days late, the issuer might send it to collections. At 120 days or more late, the cardholder runs the risk of a charge-off. This is especially likely once the payment is 180 days late, and it can significantly negatively impact a person’s credit.

People in Texas who are struggling to make debt service payments on time might want to speak with a lawyer. An attorney with experience in bankruptcy law might be able to help by examining the client’s financials or negotiating with creditors. Legal counsel could also draft and file a Chapter 7 bankruptcy petition on the client’s behalf. The debts may then be reduced or eliminated during the bankruptcy process.