Bankruptcy Helps Lower Your Credit Card Minimum Payments

21 May Bankruptcy Helps Lower Your Credit Card Minimum Payments

Checking WritingI know — a silly headline. Bankruptcy is admittedly an extreme way to lower your monthly credit card payments. But that depends on whether you are asking yourself the right question.

If you are on the Net searching for ways to lower your payments, then you need to understand bankruptcy is also an option. You may not want to consider it. I don’t like surgery. But when my back hurt badly enough, I still went to the hospital. What are some common situations where you should admit you’re in pain enough to consider bankruptcy?

  • You are regularly paying your minimum payments but have to borrow that money back next month.
  • You have been late with rent or mortgage payments so you didn’t go late with the card payments.
  • You skip health needs, like prescriptions or doctor visits…or you start thinking that’s a possibility so you can pay the card bills.
  • You are nursing your car and gambling safety — bald tires, bad brakes and the like — until you can free up enough credit to get it done.
  • You pay exorbitant wire transfer fees so you can get payments in on the very last day — because that’s the first day you have the money.

The list can go on and on. These are all common symptoms we see of folks who are overextended. Every bankruptcy lawyer has a heart-breaking story of someone doing exactly these things.

Their time horizon — the period you plan for — is no longer measured in years or even months but rather pay periods. Bankruptcy may not occur to them as an option because, well, they aren’t “those kind of people.”

Pride keeps you going when nothing else will. But pride can make you do dumb things too. Continuing on a dark path that means you never retire, can’t get sick, and can’t fix anything major that breaks is a dead end. And if you have kids, you owe it to them to consider alternatives.

Bankruptcy can eliminate these debts and many others. And actually bankruptcy can lower the minimum payments, if you have to continue making any payments, through the Chapter 13 process. Pick a lawyer in your area and talk to them about these solutions, don’t keep going down that dark road alone.

Photo Credit: David Goehring (CarbonNYC)


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I have been a bankruptcy attorney since 1989. Our firm represents consumers filing bankruptcy almost exclusively, although I have represented bankruptcy trustees as well as creditors. For 2017-2018 I am also serving on the American Bankruptcy Institute's Commission on Consumer Bankruptcy. If you live in Eastern Missouri, visit our website, send an e-mail or give us a call (314) 781-3400. Our website:
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