8th Oct 2018

According to the news, consumer debt in the United States has been steadily growing since 2012 and is expected to top $4 trillion by the end of this year.  Debts on auto loans and credit cards climb by approximately 7 percent annually. Income levels, on the other hand, have been growing at a slower rate of only 4 to 5 percent annually.  We are spending more than we make, which leads to increased debt that will eventually fall into default.

If you are one of the millions of Americans who are experiencing this debt growth in your family budget, you should consider whether it would be wise to file for bankruptcy in order to resolve your debt issues.

Too many people first try to live off of their savings, then cash out their 401(k) retirement plans in order to fund their ever-expanding budget.  Some even take out home equity loans or reverse mortgages to pay off debt. Don’t lose your retirement or possibly lose your home to pay for debt. You are undoubtedly going to need that money when you retire and you will need a place to live.  

Consumer bankruptcy is a very good option to help you bring your budget under control.  If you qualify, bankruptcy will help you to resolve your indebtedness to things like credit cards, medical bills, unsecured loans, etc.  In some instances, it can even help with to save money with your automobile loans. Depending on your income and your assets, you may be able to file either a Chapter 7 or a Chapter 13 bankruptcy.   

In Chapter 7, you do not have to make payments to any of your unsecured creditors during the case and most of these debts will be discharged at the end of the case, with the exception of things like child support, alimony, some tax debt and student loans.  You must qualify to file Chapter 7, however, through your income and an analysis of your assets will also need to be prepared.

In Chapter 13, you can establish a payment plan to repay some portion of your unsecured debts over a 3 to 5 year payment plan.  The amount you repay to these creditors again depend upon your income and your assets. If you have low income and a low amount of assets, your repayment plan will likely be lower.

Once you file bankruptcy, your creditors are prohibited from collecting against you in any way.  They are not allowed to call you, send you letters, file or proceed with any lawsuits or judgments against you, etc.  Thus, you can have peace of mind without any harassing calls.

Please give me a call at 281-847-4345.  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 on taking care of your debt through bankruptcy.  You can also send me an email at rkemsley@kemsleylaw.com. I look forward to hearing from you soon.


Rod S. Kemsley


Attorneys & Counselors at Law

505 N. Sam Houston Parkway E., Suite 400

Houston, Texas 77060

Telephone:  281-847-4345

Facsimile:  281-271-8677

Email:  rkemsley@kemsleylaw.com

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