09/17/2025
Did you realize that credit scores have only existed since 1989? That comes as a shock to most people.
The reason we have credit scores is that DEBT is CURRENCY in today's world. That's why your credit score goes down when you pay off your debts early or close credit accounts and goes up when you have many debts but make the payments on those debts on time, even if you really don't have the income to justify the debt.
Because of the way this system works, when you file bankruptcy, your credit rate will pop back UP soon after you receive your discharge in bankruptcy, often to higher than it was before you filed!
Why? Because now you're a good credit risk. Credit card companies know you can't discharge your debt in bankruptcy in a Chapter 7 for another 8 years, and if you file a Chapter 13, you'll have to pay off at least a portion of that debt over time. Since the average person pays the amount they borrowed on credit about 2x over during the course of repayment, they profit regardless.
If you've reached the point where you are simply being drug down by credit card payments and other debts and you're beginning to wonder if you'll ever get free of it, come talk to me. It's what we do.
Sometimes there are solutions that don't involve a bankruptcy. Let me walk you through your options. If nothing else, you'll feel glad that you did. Give us a call.
