1 year left under Chapter 7 time limit. Still, options may exist

On Behalf of | Aug 26, 2013 | Chapter 7 Bankruptcy |

Financial difficulties have a way of haunting. Even after steps are taken to seek the kind of debt relief available through the various forms of personal bankruptcy, circumstances over which we have no control can develop that effectively knock us back to square one.

That may leave a lot of hurting Texas families feeling hopeless, but it doesn’t necessarily have to. Contacting an attorney is always a good idea to be sure you have all the information you need to make the best possible decisions to recover a sense of control and restore confidence that there is light at the end of the tunnel. Hopefully, that’s what one young mother is able to appreciate, despite a tough current situation.

As she recently laid out for a bankruptcy advice column, she and her husband are the parents of one child and have another on the way. They filed for Chapter 7 bankruptcy protection in 2006. Since then, her husband has suffered a job loss and is bringing in only a fraction of what he used to. Future prospects are questionable.

Meanwhile, credit card bills have mounted up again and the woman admits they made some other mistakes, too. Now, fearing the loss of their home and more, she wonders if they can or should file for bankruptcy again.

Laws in a given state may vary, which is why it’s so important to speak with an experienced attorney when these kinds of questions arise. In the case we’re looking at here, the question of filing for Chapter 7 protection is not really an option. The law limits use of Chapter 7 filings to once every eight years. So, this couple has to wait until sometime in 2014 before that is possible.

There are other steps that may be possible, however. Chapter 13 bankruptcy might be an option. If no creditor lawsuits or foreclosure action by the bank are pending, contacting n attorney can help fend off such pressures.

Source: FoxBusiness.com, “Too Soon to File for Bankruptcy Again?,” Justin Harelik, Aug. 14, 2013

Archives