When you are making a major life decision, it is important to have a strategy in place. Timing can play an important factor in obtaining the best outcome possible. This is true when you are considering filing a Chapter 7, Chapter 11, or Chapter 13 bankruptcy. But, how do you know when is the best time to file? Like most things, it depends on your unique circumstances.
There are several questions that you should ask yourself.
Do you have burdensome debt that you are unable to pay, while owning few non-exempt assets? If so, you should consider filing immediately.
Do you anticipate incurring any additional debt in the near future? Keep in mind that your bankruptcy will not eliminate debt that has not been incurred yet. A common example is if you are facing health issues and you will be facing additional health care expenses. The best timing in this scenario is to file your bankruptcy case after all of your medical expenses have been incurred.
What collection activity is being taken against you? For example, if one of your creditors is close to obtaining a judgment against you or is seeking to seize your property, filing your case can immediately stop those actions.
Have you received all of the non-exempt assets to which you may be entitled? This includes anticipated tax refunds, inheritances, or other windfalls. If time permits, it would be more beneficial to wait to file bankruptcy until after you receive those assets, so that you have an opportunity to benefit from them (as opposed to your creditors).
Please keep in mind that every bankruptcy matter is different. If you are interested in learning more about Chapter 7, Chapter 11, or Chapter 13 bankruptcy, or you need help to determine the best time to file bankruptcy, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 932-5377.