Louisiana residents who fail to make credit card payments could face a variety of penalties. They could include late fees or a higher interest rate on future balances. In some cases, a person could experience a hit to his or her credit score. This is generally true whether the late payment was the result of a job loss or an inability to handle a large balance.

However, credit card companies may be more lenient with individuals who are willing to continue making payments until their financial situation improves. Those who wait too long to get a handle on their past due payments could have their accounts sent to collections. Credit card companies may also choose to sue those who fail to make payments. It is important to note that other credit card issuers may take action if a past due payment shows up on a credit report.

In some cases, a payment that is not made 90 days after it is due could result in a lower credit limit. If a past due balance is sold to a debt collector, it may not be possible to negotiate a payment plan. Instead, the debt collector will want to receive payment in a lump sum. This could complicate any effort to resolve the matter in a manner favorable to the debtor.

Filing for bankruptcy may make it possible to obtain debt relief in a timely manner. Furthermore, creditors may not be able to follow through on a planned lawsuit, foreclosure or repossession after a debtor files for bankruptcy. An experienced attorney can outline the eligibility requirements for Chapter 7 and Chapter 13..

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