Bankruptcy Law Firm Memphis, TNThis winter, Memphis weather has been all over the place. We’re supposed to see sunshine and clear skies this weekend, but tonight, temperatures could get as low as 36 degrees Fahrenheit. Though we can try to keep ourselves warm with a cup of tea, a bowl of soup, or a mound of blankets, there comes a point when we just have to turn up the heat. But the more heat we use, the higher our utility bills. If you’re dealing with unpaid utility bills, an experienced Memphis bankruptcy lawyer can help you.

I often say that people can fall into debt through no fault of their own. Debt related to utility bills is an excellent example. Some people can handle the extra cost of utilities during winter for a few months. But there are others who will be sent over the edge and can’t afford the basic necessity. If ignored, an inability to pay bills can cause an all-consuming downward spiral.

What happens if I don’t pay my utility bill?

You may be wondering, can unpaid utility bills hurt my credit score? The answer is yes. Unfortunately, utility companies tend to be the bearer of bad news, not good news. They don’t always report when you pay on time, but they never hesitate to share negative information.

Your account can be sent to a collection agency. If a bill goes unpaid for more than 30 days after the due date, the payment can be reported. Accounts in collection will show up on your credit history, and they can certainly damage your score. These situations can quickly spiral into more legal trouble, and you may have to pay additional fees, not just the unpaid balance.

Many people who need help from a Memphis bankruptcy lawyer are afraid to file bankruptcy because of what they fear it will do to their credit score. While bankruptcy will appear on your credit report, so will an unpaid utility bill, or anything that’s sent to collection. You will not save your credit score by avoiding bankruptcy. In fact, without bankruptcy, it will be very hard to improve your credit score.

Talk to a Memphis bankruptcy lawyer today.

There’s no need to fall into a downward spiral because of unpaid bills. If you take action now, you can save yourself so much stress and uncertainty down the line.

There are different kinds of bankruptcy. Each has its own benefits. Your specific situation and needs should determine which one is right for you.

  • A Chapter 7 bankruptcy will allow you to get rid of dischargeable debt, like credit card and medical debt.
  • A Chapter 13 will consolidate mortgages and car payments into an affordable amount.

Call (901) 327-2100 to talk to a Memphis bankruptcy attorney today.