If you have been procrastinating on your financial situation and are not sure of how much longer you can keep the utilities on, you may want to file for bankruptcy in Houston. Even though you are doing everything in your power to cover the household expenses and feed your child, it could be time for you to throw in the towel and learn how bankruptcy can help keep your utilities on while you work on improving your situation.
Keep in mind that bankruptcy is not a final solution for your financial troubles. Once the courts accept your filing, it will stop all collection activity and reorganize your debts so that repayment is manageable. A significant factor that can help determine which bankruptcy option is ideal for you is the means test.
Check with your utility provider first
If you have not yet informed your utility provider of your financial troubles, an ideal time would be before you file for bankruptcy. Many utility companies are aware that people fall on hard times and have programs in place to help them keep their lights, gas, water and other utilities from being shut off.
A practical last resort
Chapter 7 bankruptcy does not cease all collection and utility shutoffs indefinitely. If you only need additional time to catch up on your utility payments, Chapter 7 can provide you with up to 20 more days to pay. On the 21st day, your utility provider can legally resume collection and shut-off activities. Bear in mind that falling so far behind on utility payments can make it harder for you to obtain utility service without a deposit or some type of agreement in the future.
If your circumstances are so dire that you cannot afford to pay your past-due utility bills, and your bankruptcy filing passes the means test, it is possible to have any past due amounts and other unsecured debts discharged.