Which is worse for your credit? Continuously missing payments, or filing bankruptcy?

Every individual situation calls for a unique approach, depending on the amount and number of debts, current financial status, and financial outlook of the debtor. In most cases, bankruptcy should be avoided above all else. There is nothing worse for a credit score than bankruptcy, but missing payments is not a positive option either.

In unique situations like this, it is highly recommended to hire legal aid. Many attorneys specialize in bankruptcy law, and even more specifically in cases of personal debt and bankruptcy. There are many methods for countering mounting debts, but in this situation, they are hard to use because of the inconsistent income.

In most cases of relatively low debt totals, as this one, Chapter 13 bankruptcy is advisable because it allows the debtor relief from debt collectors, while aiding the repayment process by creating a personalized and fair repayment plan through collaborations with one of the bankruptcy court’s trustees, the creditors and the debtor. However, without the steady income there is no simple solution. Even Chapter 7, liquidation bankruptcy may prove to be the best option if a debtor has only few assets to be taken away by the process.