When you are filing bankruptcy, sometimes the timing will make a difference in the benefits you receive from the bankruptcy.
If you are facing foreclosure, eviction, wage garnishment, vehicle repossession or your utilities are about to be shut off, you may want to file an emergency bankruptcy. You can fill out the paperwork and have it filed with the court in under 30 minutes. This action will stop all creditor’s actions against you by a process called automatic stay. The automatic stay will stop all creditor’s attempts to contact you to collect on your debt.
If you have a large bill coming due soon, or you know you will be receiving a sizeable medical bill you may want to file bankruptcy after you receive these bills so you can include them to be discharged. Any debt incurred after you submit your paperwork, you will be responsible for paying.
Beware of Fraud Charges
Be mindful of not charging up items knowing you will be filing bankruptcy soon. These items will be non-dischargeable and sometimes considered fraud, and your case could be dismissed. Medical bills and essential purchases are rarely regarded as non-dischargeable.
If you received a bonus at work or had a part-time job for a few months, you may want to wait as long as you can before you file so that income will not be included in the income you have to disclose.
If you have questions about bankruptcy and when is the best time to file, contact a Dallas bankruptcy attorney to find out how you can get the most benefit from your bankruptcy.