Filing Texas bankruptcy can sometimes be a matter of timing. A bankruptcy lawyer is always the best person to consult if you are considering filing bankruptcy, as everyone’s case is unique, everyone’s financial situation is different, and an expert eye will be invaluable in determining the right time to file. For example, if you have high medical debt, you may be seeking the protection of bankruptcy; however, waiting for just the right time can significantly impact how much of your debt is discharged in the filing.
Medical Debt Continues
If you are in a situation, for example, where your medical debt is likely to continue to accumulate, it may be best to wait until your treatments are finished or whatever situation has arisen has run its course. If you file bankruptcy while your medical bills are continuing to accumulate, you may find yourself racking up new debt even as your old debt is being discharged! In this case, you will be no better off than you were before filing Texas bankruptcy.
It is important to keep in mind that filing Texas bankruptcy is like taking a snapshot of your financial situation at the exact moment of filing. Any medical debt or other debt that arises after the filing date cannot be retroactively included in the filing and will have to be paid even after your discharge. In addition, there are strict rules about when you can file a second bankruptcy after receiving your first discharge, so you will be prevented from filing for a second bankruptcy to discharge these new medical debts.
In other words, if your treatment is still ongoing or you are likely to accumulate further medical debt, it is best to wait until all the debts have been billed to you before filing Texas bankruptcy to maximize your benefits.