One question I get over and over again is “should I should file bankruptcy.” I can’t answer that question because I’m not in your shoes, but one thing I will always point out is whether the timing appears right to file a bankruptcy case. What do I mean? Glad you asked.
Many variables can affect your case – here are some things to consider when deciding whether to file a bankruptcy case now.
Are you planning a new business but have lingering debts?
You might want to file the bankruptcy sooner rather than later. If you start a business, it becomes an asset that could be sold to pay down your debts should you be forced to file a chapter 7 bankruptcy case after the business is up and running.
Do you expect to get new employment?
This is a tough one because most people hope to be able to pay their debts, however adding income might prevent you from being able to file a chapter 7 case
Are you getting married soon?
Your spouse’s income will be considered to see whether you qualify for a chapter 7 case so not filing a case before marriage could keep you from qualifying for chapter 7.
Are you getting divorced soon?
If you earn all the income, and your spouse earns little, you may qualify for a chapter 7 case while married, but not qualify once your divorce papers become final.
The income amounts to qualify for a chapter 7 case have been decreasing recently. If you qualify but are close to the income limit, it may be a good idea to go ahead and file your case because the limits change regularly. If the limits drop, your income may then be too high to allow you to file chapter 7 bankruptcy.
If you think you might receive any kind of gift of real property from a relative, you would want to file your case before the property is transferred to your name. Otherwise it could become property the trustee might be able to seize and use to pay off your creditors.
If you have concerns that any of these issues might affect your opportunity to file a bankruptcy case, you should certainly consider scheduling a free no-obligation appointment with me. I will go over all of your information and make sure you understand whether you have any issues that might make it important to file right away.
Photo By Ken Teegarden