More than you might realize, the timing of when you file for personal bankruptcy can have an impact on your ability to successfully restructure your personal finances. Although many debtors are better off filing sooner rather than later, that isn’t always the case. In fact, some debtors might be best advised to hold out a few weeks or months in order to take advantage of particular bankruptcy rules.
Why should you rush to the courthouse? Many reasons may influence this decision, but one of the most important is the protection of the automatic stay. If creditors are harassing you at home or at work, you may want to avoid the embarrassment – and the state legal actions – associated with their debt collection efforts.
Likewise, if you have made decisions that will decrease your available exemptions, such as preparing to sell a rural residence to move into the city, you may be better advised to file before the move so that you can take advantage of certain bankruptcy provisions.
On the other hand, you may wish to walk slowly to the courthouse. Creditors and the bankruptcy trustee may only examine so far into your past transactions. Last year’s Christmas gifts may be characterized as an inappropriate asset transfer if you file on December 20th of this year. However, if you file on January 2, 2013, those gifts may be beyond the applicable window.
Should you move quickly or slowly? Or is timing not really a factor in your Chapter 7 or Chapter 13 bankruptcy? The attorneys at the Dallas law firm of Fears Nachawati can help you answer this important question. Talk to our experts and dedicated professionals today.