If you are thinking about filing for bankruptcy, it might make sense to do it as soon as possible. Keep in mind that you might have some competing issues that make filing as soon as possible a sensible move.
The Law Offices of Loomis and Greene, your law firm in Loveland, offers reasons why you might not want to wait to file for bankruptcy.
You Expect to Receive Property Soon
For the most part, you can file for bankruptcy and still keep any property you might own. But there are several exceptions. So if you are expecting to come into some property due to an inheritance or other reason, you might want to file for bankruptcy before becoming a land owner.
You Got a Big Raise
Congratulations on that big raise, we are sure it is well deserved. If you are considering filing for bankruptcy, you should do it as soon as you can.
In order to qualify for Chapter 7 bankruptcy, you need to pass a means test. This test will look over your income over the last six months. If your income is too high, you will not pass the test and not qualify for bankruptcy.
So if you just got a big raise, or changed jobs and are making more money, you don’t want to wait too long before you file.
If a creditor is suing you, it makes sense to file for bankruptcy sooner than later. If you are being pursued by medical debt, credit card debt or breach on contract, filing for bankruptcy will stop the suit. There is no sense in having to fight these in court if all you have to do is file for bankruptcy.
It is important to note that bankruptcy will not stop all lawsuits.
You are Getting Evicted
If you are about to be evicted, filing for bankruptcy might put a stop to it. It won’t be for very long, but it might give you enough time to have a better plan.
Your Moving Out of State
Each state has its own list of bankruptcy exclusions. If you are moving to a state where these exclusions will negatively affect you, you might want to go on and file for bankruptcy in the state where you are currently living.
Your Vehicle is About to be Repossessed
If your car or truck is about to be repossessed, filing for bankruptcy could save that from happening. There are ways in which you can work out a plan to pay off your car when you file for bankruptcy.
If the bank is foreclosing on your home, you don’t have much time to waste if you want to keep it. If you are in foreclosure, you can stop it by filing for bankruptcy. Chapter 7 bankruptcy doesn’t have a mechanism to help you stay in your home, so the relief you get from filing will only be temporary. But Chapter 13 bankruptcy allows you to catch up on your mortgage payments and keep your home.
For more information, contact the Law Offices of Loomis and Greene.