Deciding to file for bankruptcy isn’t easy, but just making the decision to do so usually lifts a huge weight from someone’s shoulders. It’s good to decide to take action instead of simply hiding from creditors and making promises that can’t be kept. Bankruptcy can be a step forward into a better life.
There is a second decision that needs to be made. When is the best time to file? Most people want to file as soon as they decide to take this route, because they just want to get it over with and start fresh. However, that may – or may not – be the best thing to do. Sometimes, it’s better to wait a little while before filing the bankruptcy with the court.
When to File For Bankruptcy as Soon as Possible
* Are you planning on moving to another state, or have you moved from another state in the last two years? An individual must have been a permanent resident of a state for at least two years before being able to use that state’s exemption laws. This means that the laws of the two states should be compared to determine which state laws would be most advantageous.
* If utilities are threatening a shut-off, filing quickly will put a hold on that process.
* The automatic stay that goes into effect will also halt other collection and repossession activities.
When to Delay Filing for Bankruptcy Protection
* Medical bills are one of the primary reasons people get into overwhelming debt. If new, large medical bills are expected in the near future, it would be a good idea to wait until all of the bills have been received.
* It is not easy to discharge income tax debt, but it is possible if the debt is old enough and other conditions can be satisfied.
* A tax refund will be part of Chapter 7 bankruptcy unless it has been received and spent on necessities before the bankruptcy is filed.
Timing is only one of the issues that need to be discussed with an experienced bankruptcy lawyer before filing. Illinois residents can talk to attorneys at one of the four locations of Chicago Debt Solutions. More information on bankruptcy is available on their website. You can visit website or their Facebook page for more information.
