When Is the Best Time to File Bankruptcy?
It is important to think about when you file bankruptcy. Certain times are better for filing bankruptcy than others. Think about the following things when planning to file bankruptcy:
- Do not wait until the last minute if you might be facing garnishment, repossession, eviction, or foreclosure. It takes some time to fill out your bankruptcy forms. You must have enough time to receive your pre-bankruptcy filing course certificate, otherwise we cannot file your petition. Do not wait until your situation is an emergency.
- If you are not facing garnishment, repossession, eviction, or foreclosure, you may want to wait to file bankruptcy. If no one in your household has employment income, and you are not at risk of losing any assets, you might not need to file bankruptcy at this point. Remember, you can only file bankruptcy once every eight years. If there is a chance your financial situation might get worse, it is wise to wait and file bankruptcy then.
- If you have been unemployed but you expect to get a job soon, you may want to file bankruptcy now. Creditors can’t garnish your income when you are only receiving public benefits. Once you start earning money, you might be garnished. Also, a good time to get a fresh start is when your financial situation is about to improve. This is when to wipe the slate clean and start over.
- You should not file bankruptcy yet if you expect more large debts to come along. You can only file bankruptcy once every eight years. If you know that you will probably have more debts happening soon, you should wait to file bankruptcy. That way all those debts will be included. For example, You may be pregnant, if you file now, you will not be able to include hospital bills in your bankruptcy. Or maybe you know you have to have surgery in the next year. If you file bankruptcy now, you will not be able to include the hospital bill for the surgery. You will have to pay it.
If you need assistance in determining when is the best time for you to file for bankruptcy, call the Law Offices of Chirnese L. Liverpool at (818) 714-2200 to schedule your free phone consultation.
If you live in North Carolina and are in need of bankruptcy assistance, contact the Maxwell Law Firm, PLLC at 704-461-1883.