Question: I need to file bankruptcy because I can't make my credit cards payments. The problem is that my credit score is very high and I was wondering if that means I can't file bankruptcy.
Basically, in 3 months I won't be able to make any more than the minimum credit card payments. I know if that happens I won't be able to ever pay-off the credit cards. It will take many decades to pay them off and the interest and late fees will be huge.
I made some bad investments and started a business with a partner. I think the investment was really just a scam or a fraud and the business didn't work because I ran out of money. We rushed and opened stores in Sandy Springs, Woodstock, Alpharetta and Roswell. We expanded the business too quickly and it just didn't work.
I personally guaranteed all the business debt myself. Like I said, I can only afford to make the minimum monthly payments. I really need the relief of bankruptcy. Please tell me if I can go bankrupt even though I have a high credit score.
L.T. in Sandy Springs
Answer: Your credit score (or FICO score) is not relevant to your ability to file bankruptcy. Many people with very high credit scores file bankruptcy and many people with low credit scores file bankruptcy.
A bankruptcy trustee and a bankruptcy judge will not look at your credit score. We perform a thorough financial analysis for clients to determine how best to attack their debt problems and a credit score is simply not part of the criteria for a chapter 7 or a chapter 13.
It is common for someone to have a good credit profile yet need to file for bankruptcy. That can happen when an individual realizes that he or she cannot ever get out of debt, that their credit cards will never be paid off by making the minimum payments.
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