Is It Better to File Chapter 7 Bankruptcy At The Beginning Or The End Of The Year?
Filing for bankruptcy can be a powerful remedy for people facing severe debt. But choosing to declare bankruptcy isn’t a simple matter of weighing the pros and cons. It’s a complicated issue that requires you to consider an array of factors. That’s why we always advise potential filers to consult our bankruptcy attorney in St. Louis to determine whether bankruptcy is the best debt relief option for them. A common question that potential filers often grapple with is when exactly they should file for bankruptcy. Timing can be everything when considering bankruptcy. In this article, we’ve rounded up everything you need to know about timing your Chapter 7 bankruptcy filing. Read on to find out more.
Filing for bankruptcy: when is the best time?
Often, a lot of people choose to file for bankruptcy within the first quarter of the year. The allure of this period is the fact that people can use their tax refund to cover legal and court fees. Declaring bankruptcy at the end of the month is also quite popular among prospective filers. Usually, when filing for Chapter 7, filers need to undergo a ‘means test’ to confirm their eligibility and must provide 60 days’ worth of pay stubs. Therefore, filing at the end of the month rather than at the beginning gives you one less month worth of income information to disclose. Moreover, it may be beneficial to file for bankruptcy before the first Tuesday of the month if you are facing a possible foreclosure. That’s because most mortgage companies file their foreclosure proceedings on that day. If everything goes well, this could allow you to delay the foreclosure.
When to delay filing for bankruptcy
In some cases, it might be advisable to wait a couple of weeks or months before presenting your case. Filing for bankruptcy too early could mean losing property while waiting too long could aggravate your situation further. You can consider delaying your filing if you:
- Recently lost your job or took a pay cut.
- Want to change the terms of your mortgage soon.
- Think you have more debts on the way.
- Have assets or property that you would lose if you filed too early.
St. Louis Bankruptcy attorney
The bottom line is when you choose to file for bankruptcy largely depends on you. Remember, it’s relatively easy to get lost in the complicated paperwork and make a mistake that could render your case null and void. Therefore, always consult a bankruptcy attorney before you file your case.
For personal advice on when and how to file for bankruptcy, our bankruptcy attorney in St. Louis is here to help. With over thirty years of experience handling financially complex cases, Charles H. Huber can offer you bankruptcy counsel and asset protection advice right here in St. Louis. Give us a call today at 314-370-8827 or fill out our online contact form here.