When To File Bankruptcy

: Reese Baker & Associates

  Filed under: Filing bankruptcy

timingDebt problems are stressful and many people a sense of panic, especially when debt collectors or notices of foreclosure are involved. Whether you are experiencing a financial hardship on the horizon or are literally driving around to avoid the repo man, the timing of your bankruptcy filing is important.

The Countdown

The best time to file your case really depends on you unique financial situation. If you have yet to miss payments or are not considered delinquent, your Houston bankruptcy lawyer may be able to find alternative debt solutions to resolve your troubles. You may be able to negotiate a payment agreement that fits your budget, or eliminate some debts through a management plan. In this instance, filing right away may not be the solution.

If you are still considering a bankruptcy in the next few months or are experiencing problems with asset or income seizure, filing soon could be crucial. You will be required to complete a credit counseling course, so you should ask your lawyer how to go about doing that as quickly as possible. There are electronic filing options that can speed up the petition process and have your case activated as fast as the court can process your file. You can even receive an official proof of filing that can be served to any aggressive creditors or repossession agents.

It is important to note that the timing of your filing could also be influenced by a prior bankruptcy case. There are rules as to how long you would be required to wait before filing for bankruptcy again after a prior debt discharge. For instance, if you received a debt discharge in a prior Chapter 7 case you would be required to wait at  least 8 years before filing again,  4 years if filing a Chapter 13 this go around. The waiting time for filing again after a prior Chapter 13 case is 6 years for a new Chapter 7, or 2 years for a new Chapter 13 case.