Timing Your Bankruptcy

When you have decided to file bankruptcy to get some financial relief from your debt, you may be surprised to know that when you file your paperwork could make a huge difference in the outcome.

File Now

If you are in immediate danger of losing your home, your car, or having your utilities shut off, you can file an emergency bankruptcy in less than thirty minutes. When you submit your papers with the court, an automatic stay immediately goes into effect, stopping all legal actions against you regarding your debt.

File Later

You may want to wait until the bill arrives before you file bankruptcy if you know you will have a large medical bill, unpaid rent, or any other large bill coming due in a few weeks or months. Any debt that you incur after you file your paperwork will not be included in your bankruptcy.

File Even Later

If you have recently lost your job and your wages were pretty decent, you might want to wait as long as six months before you file so your average income will be much less, practically ensuring you will qualify for Chapter 7 and eliminate most or all of your unsecured debt such as credit cards, medical debt, and personal loans.

While you are waiting to file bankruptcy, be careful not to make large purchases, the court may assume you are attempting fraud. At the very least, the new debt will not be included in your bankruptcy, and at the worst, you could serve some jail time for fraud.

If you are about to lose your home or recently lost your job, contact a Fort Worth bankruptcy attorney to find out when is the optimal time for you to file to get the most relief from the bankruptcy law.