Our Bankruptcy Blog

Is There a Best Time to File Bankruptcy?

There are many different reasons you may consider filing for bankruptcy. If you find yourself struggling with a considerable medical, credit card, or mortgage debt, or have been hit hard by a failed business venture, you may feel the pressure to act quickly. Bankruptcy can be a great financial tool, but it is important to know all your options before filing. If your debt is becoming too much to handle, carefully weigh your options with an experienced bankruptcy attorney. Your decision to file should be expertly guided.

Reasons to File Bankruptcy

If you are in danger of your assets or property being seized or foreclosed on, you may want to act soon. Filing bankruptcy gives you special protection from creditors through an automatic stay. The automatic stay serves as an immediate court order which states creditors must cease all collection efforts against you while the bankruptcy is in process. Since it immediately takes effect, it buys you time to possibly reach an alternative arrangement with your creditors. Within days, your creditors will be notified of these proceedings and the harassing phone calls and emails will stop.

What Can Impact Filing Bankruptcy?

• You recently took a pay cut or lost your job.

Chapter 7 bankruptcy is based on financial need. To determine who is eligible for Chapter 7, all prospective filers must take the Means Test. This compares your average income over a six-month period against the median income of a household of your size in your state. If you were just laid off or demoted, your pay cut may not accurately reflect in your recent financial history. The timing of the means test can be a very important factor in accurately reflecting your financial situation.

• Multiple Bankruptcy Filings

Although you can file for bankruptcy multiple times, federal law places strict waiting periods on the time between disclosures. Your case will only cover debts you acquired prior to the filing.

Experienced Bankruptcy Attorney in Jacksonville

To begin discussing your financial situation with experienced legal counsel, give us a call for a free and confidential consultation. Call the attorneys of Parker and Dufresne and we will proceed with the best solution for you. Your financial freedom is our priority!