Kimel Law OfficesKimel Law Offices2026-08-07T00:32:03Zhttps://www.mkimellaw.com/feed/atom/WordPress/wp-content/uploads/sites/1103491/2023/11/cropped-site-icon-32x32.jpgOn Behalf of Kimel Law Offices<![CDATA[Can a lower credit score affect your everyday finances?]]>https://www.mkimellaw.com/?p=476782026-08-07T00:32:03Z2026-08-07T00:32:03ZWhy credit scores matter
A credit score usually shows payment history, outstanding debt and types of credit accounts. It is a numerical representation of your financial and credit history.
Many financial institutions use credit scores to estimate the chances that a borrower will repay a debt. Higher scores result in better borrowing terms, while lower scores may signal greater lending risk. Credit scores can decline because of:
Missed or late payments
High credit card balances
Loan defaults
Accounts sent to collections
Bankruptcy filings
Identity theft that remains unresolved
Errors on a credit report
Not every lower credit score reflects irresponsible financial behavior. Unexpected hardships like medical emergencies may temporarily affect your credit profile despite responsible financial habits.
Build stronger financial opportunities
While a lower credit score can affect many aspects of everyday finances, it does not permanently define your financial future.
Consistently paying bills on time, reducing outstanding debt, reviewing credit reports for errors and addressing inaccurate reporting can gradually improve a credit profile over time. When inaccurate information or unlawful credit reporting contributes to financial harm, understanding your available legal rights is an important step toward restoring both positive credit standing and long-term financial stability.]]>On Behalf of Kimel Law Offices<![CDATA[Can bankruptcy prevent people from securing mortgages?]]>https://www.mkimellaw.com/?p=476762026-07-25T15:03:06Z2026-07-25T15:03:06ZBankruptcy limits mortgage eligibility
People who already have mortgages can often renegotiate them or bring them out of arrears due to a successful bankruptcy filing. People who are not yet homeowners may be temporarily unable to acquire a mortgage after they receive a discharge.
However, the discharge has a diminishing impact on creditworthiness over time. Even those seeking federally-backed mortgages are eligible for consideration once two years have passed since the date of their bankruptcy discharge. In many cases, people can qualify for competitive mortgage terms within a decade of their bankruptcy discharge, possibly even sooner than that.
Bankruptcy may actually make it easier to secure a mortgage by eliminating credit issues that might drag down a person's credit score and affect their budget indefinitely without bankruptcy protections. It can also take pressure off of a person's budget, making it easier to remain in good standing on a mortgage after securing one.
Those concerned about their current financial challenges may want to discuss those issues and their long-term plans with a bankruptcy lawyer. Attorneys can help people evaluate their options and manage the bankruptcy process to minimize the long-term consequences of filing.]]>On Behalf of Kimel Law Offices<![CDATA[Washington Chapter 7 filers have choices]]>https://www.mkimellaw.com/?p=476742026-07-18T22:41:04Z2026-07-18T22:41:04ZWashington residents who may be contemplating filing for Chapter 7 bankruptcy have more options than debtors in some other states. Here in Washington, those filing under Chapter 7 can decide whether to use the federal or state exemptions regarding the personal property they retain.Having choices when facing bankruptcy is definitely a good thing for Washington debtors. Read on to learn more about how those choices can affect your debt reduction strategy.
Washington has some liberal exemptions
Determining which set of exemptions to use depends on the circumstances of your individual or marital finances (if filing jointly with your spouse). Therefore, you need to learn which exemptions can benefit your situation.For instance, according to Wash. Rev. Code §§ 6.15.010(1)(a) - (1)(f), the state’s wildcard exemption allows Chapter 7 filers to hang on to as much as $10,000 of the personal property they choose in a bankruptcy. They may also keep a cushion of up to $2K in their bank accounts. Those who receive student loans can save $2,500 of these funds.
Some federal exemptions could fit better
If you are awaiting a personal injury settlement, the federal exemption is generally higher than Washington state — $27,900 (federal) versus $20,000 (Washington). As with most decisions, the correct choice is situation-dependent.
How to know which exemptions to choose?
It’s understandable to be unsure of your next move when faced with mounting bills that you can never pay off. Your legal team can review your circumstances and offer you a recommendation. Find the path to financial freedom that a completely debt-free slate can provide by filing for a Chapter 7 bankruptcy here in Washington.]]>On Behalf of Kimel Law Offices<![CDATA[Options after a job loss during a Chapter 13 bankruptcy]]>https://www.mkimellaw.com/?p=476692026-06-30T15:24:41Z2026-06-30T15:24:41ZThe plan or the bankruptcy may change
There are two ways for those who suddenly lose their jobs or otherwise experience a drastic reduction in income during Chapter 13 proceedings to respond. Filers can modify their repayment plans based on lower income levels. The courts can agree to alter the amount due each month and the amount each creditor receives based on the new financial circumstances of the filer.
In scenarios where job loss results in a total cessation of income and finding a new job proves challenging, filers may see their income drop low enough to pass the means test for a Chapter 7 bankruptcy. Especially if they are not at risk of losing property to liquidation because they can exempt their assets completely, filers can ask the courts to convert a Chapter 13 bankruptcy to a Chapter 7 case.
Job loss and other hardships can force people to modify their payment plans or convert their bankruptcy cases. Evaluating both options can help those concerned about completing a Chapter 13 bankruptcy respond effectively to financial pressure.]]>On Behalf of Kimel Law Offices<![CDATA[Insolvency doesn’t always lead to bankruptcy]]>https://www.mkimellaw.com/?p=476672026-06-18T19:39:35Z2026-06-18T19:39:35ZAccounting insolvency
Accounting insolvency (also known as business sheet insolvency) occurs when a business’s debts are greater than its assets. This can be difficult to recover from without an influx of money because if the business sells off some of its assets to pay its debts, it’s just going to end up with even fewer assets – some of which may be necessary to operate the business.
Sometimes if a business owner can convince their creditors to have faith in them to recover from their insolvency, they can persuade them to accept payments in installments or even to agree to accept a percentage of what they’re owed. Some creditors might see that as better than getting nothing. However, they might not want to continue to provide goods or services to the insolvent business.
Equitable insolvency
With equitable (also referred to as cash flow) insolvency, a business’s total assets (both fixed and liquid) exceed its debts. However, the business doesn’t have enough liquid assets to pay their debts. That means the business would probably have to sell some of its fixed assets (like buildings and equipment) to keep up with its debts. That can seriously affect it. A business might need to downsize and possibly change its product line or move to an online company.
Financial issues that lead to insolvency and potentially bankruptcy rarely, if ever, solve themselves, and they typically don’t improve over time without a clear strategy. Getting experienced legal guidance as early as possible can make all the difference.]]>On Behalf of Kimel Law Offices<![CDATA[How medical emergencies lead to financial hardship]]>https://www.mkimellaw.com/?p=476652026-06-08T08:33:51Z2026-06-08T08:33:51ZAnyone who has ever had an unexpected medical emergency understands how quickly your life can be upended. With such an event comes the overwhelming physical and emotional challenges.
But another stressor comes along that lasts long after the emergency is over. Individuals find themselves struggling with hospital bills, specialist fees, prescription expenses and lost income from time away from work. Even with health insurance, medical debt can become impossible to manage. For some people, bankruptcy may provide a path toward financial recovery.
A fresh start after a crisis
Medical emergencies are a common cause of financial distress in the United States. Costs add up quickly, especially when treatment requires hospitalization, ongoing care or a long recovery period.At the same time, the ill or injured individual may be off work for several weeks or months. The combination of unexpected expenses and reduced income can create financial pressure.Even financially stable households may find themselves relying on credit cards, personal loans or retirement savings to cover daily expenses.It’s important to understand that medical debt is generally considered unsecured debt, meaning it isn’t tied to collateral such as a home or vehicle. Therefore, it may be dischargeable in bankruptcy.There are two main types of personal bankruptcy:Chapter 7 is often referred to as a liquidation bankruptcy. For households that pass the means test, Chapter 7 may provide relief by eliminating qualifying medical debt. It stops the collection calls and letters and halts wage garnishments in many situations. Chapter 13 allows individuals to reorganize their debts through a court-approved repayment plan. This option can be helpful for homeowners who have fallen behind on mortgage payments or who want to protect their assets. At the end of a successful Chapter 13 plan, some remaining unsecured debts may be discharged.One of the most stressful aspects of overwhelming debt is the collection calls and letters, wage garnishments and threats of lawsuits. Once an individual files for bankruptcy, an automatic stay is imposed, generally prohibiting creditors from continuing collection efforts.Not every person with medical debt needs to file for bankruptcy. But when medicalbills become unmanageable and creditors aggressively pursue collection, it’s essential to know that bankruptcy is a legal option that can provide relief and offer a fresh financial start.
]]>On Behalf of Kimel Law Offices<![CDATA[How debt impacts mental health]]>https://www.mkimellaw.com/?p=476632026-05-26T05:19:31Z2026-05-26T05:19:31ZWhen debt becomes unmanageable, it can affect one’s mental health. Several studies done over the years have linked debt to mental health conditions. Financial health and mental health are directly and deeply intertwined. So, financial stress can lead to or exacerbate mental health issues.Here is how this can happen:
Sleep deprivation
Debt often triggers the fight-or-flight response. How the brain responds to an immediate physical danger is nearly identical to how it responds to continuous worries about money. When the body is flooded with stress hormones, such as cortisol and adrenaline, the stress response system is engaged. This can keep someone awake, as they constantly think about bills, mounting debts and endless phone calls from creditors.
Depression and anxiety
The constant worry about being unable to cover basic living expenses, the snowballing effect of interest, the actions of debt collectors and the impact of financial hardship on the future can lead to depression and anxiety.One may feel hopeless, angry and afraid of the future. This can make it difficult for them to make better financial decisions. For instance, they may start ignoring bills and calls as a way to avoid stress or because they believe no action can make a meaningful difference. But unfortunately, this can worsen the situation.
Loneliness
It’s not uncommon for people under financial stress to withdraw from their loved ones. This can be because of stigma, shame, fear of judgment or the inability to afford social activities. Being alone when someone keeps receiving phone calls and bills they struggle to pay can negatively impact their mental health. Debt can lead to a heavy psychological toll, which can eventually affect your physical health. Filing for bankruptcy legally stops creditors from pursuing you, which means no more endless calls and constant worrying about repossession. It allows you to eliminate or repay debts in a manner that protects your well-being. ]]>On Behalf of Kimel Law Offices<![CDATA[Why the minimum credit card payment often is not enough]]>https://www.mkimellaw.com/?p=476592026-05-13T10:41:41Z2026-05-13T10:41:24ZWhen you go to pay off your credit card, you will often have a few different options. You can schedule a payment, pay the entire balance at once, make a partial payment or just make a minimum payment.
While making minimum payments is better than paying nothing at all, it is important to know that it usually is not enough. In some cases, it can trap you in a cycle of debt that can quickly get out of hand.
High interest rates
The trouble is that many credit cards have very high interest rates. Your rate could be between 15% and 25%.Even if you make a minimum payment, interest is then applied to the balance. In some cases, the amount of interest that you owe may then be higher than the minimum payment that you have made. This means that your total debt keeps growing on a monthly basis, even if you keep paying the minimum on schedule.Additionally, even if the minimum payment does technically chip away at your balance and pays more than you owe in interest, that interest significantly increases the total amount that you owe. The initial charges may have felt affordable, but as the interest keeps adding to your total debt, you may find that you do not have enough disposable income to make those payments.For these reasons and more, credit card debt is often a reason why people start to consider their options for debt consolidation or a bankruptcy filing. It is important to be proactive and to understand exactly what legal options you have to give yourself a fresh start financially.
]]>On Behalf of Kimel Law Offices<![CDATA[Can you file for Chapter 7 bankruptcy twice?]]>https://www.mkimellaw.com/?p=476572026-04-27T18:30:03Z2026-04-27T18:30:03ZMany people who file for bankruptcy only need to do so once. It solves their debt problems and helps to create a positive financial future. They may be facing overwhelming debt for a variety of reasons, and a bankruptcy filing can give them a fresh start.
But what if you run into problems again in the future? Are you allowed to file for Chapter 7 bankruptcy twice?
There is no limit to bankruptcy filings
The reality is that there is not a limit to the number of times you can file for bankruptcy. You can do it twice, three times or even more if necessary.Rather than limiting the total number of filings, the law simply creates a waiting period. You cannot file again immediately. The waiting time depends on your original filing and the new type of bankruptcy that you would like to file for next.For instance, if you file for Chapter 7 bankruptcy and then want to do so again, you need to wait eight years before the second filing. But if you want to use Chapter 13 bankruptcy the second time, then you only have to wait four years.Similarly, if you start with Chapter 13 bankruptcy and then want to use it again, you have to wait two years. If you would like to use Chapter 7 bankruptcy the second time, then you may have to wait up to six years, but it depends on how your original Chapter 13 bankruptcy is discharged, so you may not have to wait the full six years in all cases.
Your bankruptcy options
If you are looking for a fresh start, bankruptcy is one option you may want to consider, and it is very important to understand how the process works. Be sure to carefully look into your legal options at this time.
]]>On Behalf of Kimel Law Offices<![CDATA[Dealing with a mortgage in Chapter 13 bankruptcy]]>https://www.mkimellaw.com/?p=476552026-04-10T09:27:17Z2026-04-10T09:27:17ZWhen bills have higher balances due than what you can afford each month, bankruptcy may become an option. One form of bankruptcy that’s sometimes possible is a Chapter 13, which requires you to make regular payments to the bankruptcy trustee.
If you’re a homeowner who has fallen behind on your mortgage, you should understand how the bankruptcy will impact the mortgage. Since this type of bankruptcy is based on repayment of debt over time, there is an opportunity for you to catch up on missed mortgage payments while keeping up on current payments.
How does a Chapter 13 help with catching up on the mortgage payments?
A Chapter 13 bankruptcy can create breathing room in your budget. When the case is filed, an automatic stay is issued. This stops many collection actions, including the foreclosure process. This doesn’t erase the debt, but it can give you space to deal with the mortgage arrears. The Chapter 13 bankruptcy repayment process takes three to five years to repay. During that time, you must keep up with the payments on the mortgage. Additionally, the arrears are spread out over the course of the bankruptcy so that you’ll be caught up once the bankruptcy is discharged. It’s not always easy to work through a Chapter 13 to save your home; however, it’s important to work through the process if you want to keep your home. It’s important to understand exactly how the bankruptcy will impact your finances and assets. Working with someone familiar with these matters may be beneficial so you can ensure you’re protecting your rights and upholding your responsibilities. ]]>