Should I Wait To File For Bankruptcy?
Even if you have decided that bankruptcy is the right choice for you, there is a good chance you have also debated whether you should file for bankruptcy now or wait. If you are hesitating to proceed, that isn’t necessarily a bad thing. After all, the timing of your filing can affect your case and there are circumstances in which it is in fact better to hold off on beginning to file for bankruptcy. However, bankruptcy is a complicated process and even Florida courts highly recommend that you have legal help in determining how to proceed with your individual case. The assistance of competent Plantation bankruptcy attorneys like those at Nowack & Olson, PLLC can help you choose the best time to pursue a fresh start.
Today we will take a look at some of the general reasons why it might be a good idea to postpone filing for bankruptcy.
You Know a Pay Cut is Coming
Let’s say you’ve been hired for a new job that starts with a lower salary than your current position. You should probably hold off on filing for bankruptcy any time you know a reduction in pay is forthcoming. This is because whenever someone files for Chapter 7 bankruptcy, his or her last few months of income are then looked at by the court to determine eligibility for the Chapter 7 process. If your income is over a certain amount, your sole option would be to file under Chapter 13. While this is the most common type of bankruptcy filed by individuals according to the IRS, Chapter 13 also requires repayment of all or part of the debts in question which is not ideal if you are struggling financially. Therefore, it is probably better to wait if you know your income is going down.
You Anticipate More Debt in the Near Future
Keep in mind that the only debt that will be considered in the bankruptcy process is the debt you have at the time of filing. Any debt you incur after you file will be owed in full and cannot be discharged. Therefore, you should probably hold off on filing if you expect to have new expenses sometime in the near future even if times are currently financially straining.
You’re Moving to a State with More Exemptions
Relocating can have many different benefits, especially for anyone who is currently considering pursuing bankruptcy. Every state has its own set of exemptions that can be utilized when pursuing bankruptcy if you are moving somewhere that happens to have exemptions that seem more beneficial to your situation than where you previously resided, then it’s probably a good idea to wait until your new state has been established as your new residence prior to filing for bankruptcy.
You Can Depend on Us to Guide You Through
It is important to take immediate action if you have found yourself in a situation where your debt is more than you can handle. And instead of immediately proceeding with pursuing bankruptcy, one of the best initial steps that you can undertake is to obtain legal advice about when and how you should proceed with your case in lieu of your individual situation. Turning to a knowledgeable and experienced legal team like the South Florida bankruptcy attorneys at Nowack & Olson, PLLC means that you are gaining a passionate advocate who can guide you throughout the bankruptcy process. Contact us today to schedule a free consultation that could be the first step toward rebuilding your financial picture.