When to File for Bankruptcy

Skilled Help from Attorney David R. Chenelle

You should contact Attorney Chenelle to discuss your options and to decide if filing bankruptcy is right for you as soon as you believe bankruptcy is a possibility. In some cases, you may not want to file until all anticipated debts have been incurred. For instance, a person who is in the middle of substantial medical expenses shouldn’t file until all medical treatment has either been covered by insurance or the treatment has ended. Also if an individual is entitled to receive some form of nonexempt asset, the case should not be filed until after the asset has been received and used or else it will have to be turned over to the Trustee.

If an aggressive creditor is threatening to attach or garnishee your wages or assets or if a foreclosure action has been filed against you, you will want to file immediately to take advantage of the automatic stay that is part of the filing and, in a Chapter 13, to protect your interest in your property.

It is important to remember that bankruptcy laws were enacted over 100 years ago to protect individuals who are unable to pay back creditors and are having great difficulty simply making ends meet to support themselves and their family. By consulting with Attorney Chenelle, it can be determined what form of bankruptcy you qualify for and what chapter best suits your needs.

Types of Bankruptcy

Not everyone is eligible for Chapter 7 bankruptcy. A “means test” is used to determine if you qualify. However, some individuals will qualify based on specific personal circumstances. Nonexempt assets are used to pay off creditors but you are left basically debt-free after the discharge.

Chapter 13 is normally used for individuals with regular income who wish to keep one or more assets. Debt is consolidated and paid off according to a court approved “plan” over a period of 3 to 5 years.

Contact Attorney Chenelle today for a free initial consultation in which you may discuss the details of your particular situation in order to learn the bankruptcy options available to you.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.