They say timing is everything and this couldn’t hold truer than when deciding to file for a Dallas bankruptcy. The majority of bankruptcy cases emerge after an individual has experienced a life-changing event such as a prolonged illness, loss of employment, after being sued, or after a divorce. While this seems like an appropriate time to seek bankruptcy relief, the best time to file for a Dallas bankruptcy will be unique to everyone.
When to Wait When Filing Dallas
If you’ve been earning a high salary and suddenly lose your job, it may be your first instinct to run out and file bankruptcy. However, this actually isn’t the best play. Because the means test takes your most recent 6 months of compensation into account it may mean that you fail the Chapter 7 means test and have to convert to a Chapter 13. This means a longer period until discharge and may add to the total cost of your bankruptcy. It may be a better idea to wait several months before filing in order
When to File Bankruptcy Right Away
If you receive a summons regarding being sued for a debt, it is some people’s first reaction to ignore the notice. This form of “sticking one’s head in the sand” is probably about the worst thing you could do in this scenario. In fact, when credit card Company’s sue individuals over unpaid credit card balances, they hope you won’t show up. With a default judgment, they are then free to secured liens on your property or garnish your wages. If you file bankruptcy, however, it stops all legal proceedings against you involving debt and gives you time to put together a plan on how to pay it back. With a Chapter 7 bankruptcy, you may even be able to legally wipe out the debt altogether.
Timing Your Bankruptcy Right
Bankruptcy is a legal remedy that allows a debtor to eliminate certain forms of debt under the United States Bankruptcy Code. It’s complicated and as aforementioned, timing is important. Many individuals who don’t enlist the assistance of a qualified Dallas bankruptcy attorney find their cases being dismissed without the original debt relief they sought in the first place. Because of the long lasting personal and financial implications of filing for bankruptcy protection, you should contact a bankruptcy lawyer.