22nd Jan 2018


It may be hard to know when is the right time to file bankruptcy and whether you qualify to file bankruptcy.  It is a fairly tricky question and you should consult an attorney who specializes in bankruptcy to help you avoid the pitfalls and answer your questions.


In general, Chapter 7 is designed to help those with mounting unsecured debt.  Unsecured debt includes credit cards, signature loans, medical bills, old phone and utility bills, etc.  If you qualify, Chapter 7 will discharge, or wipe out, these types of debts.  You will never be bothered by these creditors again and the balances will be changed to $0.00 amount due.  With Chapter 7, you will receive a Fresh Start at the end of the case to start your credit life over again.


Chapter 13 is designed to help those who may be behind on a house or car payment so that those payments may be put into a 3 to 5 year plan to bring you current.  This type of bankruptcy is often filed to stop a foreclosure or repossession.  It is also used by consumers who make too much money to qualify for Chapter 7.


There are several qualifying factors that must be evaluated to determine whether you can file Chapter 7 or Chapter 13.  Some of these factors include whether you have filed a previous bankruptcy in the 4 to 8 year period prior to this new case as well as your income level within the 6 months prior to filing.  Other factors may include whether any of your debt was obtained fraudulently and the type of debts you have.


Often, bankruptcy will help those in your situation to lift the load so that you can once again breathe freely and it will stop your creditors from chasing after you.  Once you file bankruptcy, you are automatically protected from creditor collection.  Your creditors will be sent a notice from the federal courts that they are not allowed to call you, send you any collection letters or proceed with any foreclosure, repossession or lawsuit proceeding.


If you are struggling and wonder you are eligible to file bankruptcy, I urge you to give me a call.  I’ll be happy to sit down with you for a free, no obligation consultation to evaluate your situation and inform you of your different options to remove that burden from your shoulders.  Please contact me at 281-847-4345 or rkemsley@kemsleylaw.com.  I look forward to hearing from you soon.

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