For many people the decision to file for bankruptcy is not one that comes easily. Most take time to review all of their options and pursue other methods of debt relief prior to filing. While it is important to evaluate whether bankruptcy is the right decision, waiting too long or not long enough is a very fine line to walk.
Too Fast, Too Slow
When you are considering filing for bankruptcy the timing of your case is crucial. Filing too quickly can be a problem if you have filed for bankruptcy in the past, have recently accumulated a lot of debt, or even made significant changes to your income or assets. There are specific laws about filing for bankruptcy after a prior discharge and you could be facing a waiting period of 2 to 8 years. Filing too soon could result in your case being dismissed. Further, accumulating a large amount of debt, additional income or selling assets just prior to filing could be viewed as suspicious by the court. If the court feels your recent financial transactions are fraudulent you are likely to face a case dismissal or even criminal charges.
On the other hand, waiting too long to file your petition could be problematic for other reasons. If you are facing foreclosure, wage garnishment or repossession waiting to file could leave your assets at risk. Depending on your state of residence, you could lose your home to foreclosure in a matter of 30 days after missing a payment. Further, allowing your debt burden to drain your savings or require you to live off credit to make ends meet is never a solid financial strategy. If you aren’t sure about where your financial hardship stands, consult with a Dallas bankruptcy lawyer to determine your needs for bankruptcy and the timeline for filing your petition.