Should I File Bankruptcy Now Or Wait Until After The Holidays?

14 Nov Should I File Bankruptcy Now Or Wait Until After The Holidays?

There are many reasons to file for relief under the Bankruptcy act, and those reasons may dictate the timing of when you file.  For example, if your wages are about to be garnished or your home is in foreclosure, filing a petition in Bankruptcy will stop it.

If, however, you can wait a couple of months to file, sometimes that is the best approach.  It will give you a chance to save up the fees needed to file, give you time to get together the documents and information the attorney will need and allow you to be better prepared for the process.  Additionally, considering the changes to the law that went into effect two years ago, there can be sound reasons for choosing the specific time to file. 

What you shouldn’t do, however, is incur more debt knowing you are going to file for Bankruptcy relief.  Doing so can result in an objection to that debt being discharged, or, in extreme cases, losing your discharge altogether.  The Bankruptcy act specifically says that you can’t discharge debts of more than $500 if incurred for luxury goods from one vender within 90 days of filing.

There’s no easy answer to the question, unfortunately.  It depends solely on your circumstances including your debts, assets, and income.  The best thing to do is to talk to a competent bankruptcy attorney.

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Douglas Jacobs is a California bankruptcy attorney and partner in the Chico law firm of Jacobs, Anderson, Potter & Chaplin. Since 1988, Mr. Jacobs has taught Constitutional law and Debtor-Creditor/Bankruptcy law at the Cal Northern School of Law. He has served as Dean of Students since 1994. He is a frequent lecturer on the subject of consumer bankruptcy law, and has spoken at both state and national levels.
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