Bankruptcy and Public Assistance

Bankruptcy and Public Assistance

Some debtors are under the impression that receiving public assistance may make them ineligible to file bankruptcy. The truth is you can file if you are receiving public assistance or have low income. With economic uncertainty and the cost of living on the rise, many households are receiving some type of federal assistance to help make ends meet. Bankruptcy is an option accessible to most people, including those with low income and those receiving federal aid. If you are struggling to pay your bills or dealing with multiple collection attempts from creditors, filing may help you regain financial stability.

Millions of consumers receive public assistance due to job loss, income reduction, or recovering from illness  such as:

  • Supplemental Security Income (SSI)
  • Supplemental Nutrition Assistance Program (SNAP)
  • Temporary Assistance for Needy Families (TANF cash aid)

Bankruptcy can be an option to help get your finances in order. Chapter 7 bankruptcy may help discharge debt while protecting personal property. If you are facing a lawsuit, utility disconnection, pending eviction, wage garnishment or harassment from creditors it may be time to consider filing. If your utilities have been shut off, such as gas, electric, water, etc., the filing may help restore service. This chapter is also an option for those who have little or no assets.

Considering Bankruptcy as an Option?

If you qualify you can have filing fees waived but you should discuss the possibility with a bankruptcy attorney. Many try to file on their own thinking they are saving themselves money, but you should still consult with an attorney to avoid making a costly mistake.n If you would like to set up a free consultation with one of our bankruptcy attorneys feel free to call us or fill out our contact form .