When Filing Bankruptcy Is the Best Option

Should You Delay Your Bankruptcy Filing?

Do you think that you're ready to file for bankruptcy, but wondering if the time is right? If so, it will help to know some reasons why you should delay your bankruptcy filing. 

Your Medical Condition Has Not Stabilized

A common reason for filing for bankruptcy is to discharge your medical debts. As the bills start coming in and you're unable to pay them, you may feel like you need to resort to bankruptcy in order to get out from underneath your debt. However, more medical bills may come in if your medical condition has not stabilized. In this situation, it would be best to delay your bankruptcy until all of your medical bills have been received.

You Have Not Found A New Job

If losing your job has caused you to rack up a lot of debt, it can bring up the questions about when to file for bankruptcy. If you file while you are still unemployed, you will not have a steady income to help pay off the bills that come in after your bankruptcy has been approved. It may be best to wait until you find a new job and have a predictable income, which can even help determine if you qualify for Chapter 13 bankruptcy and can form a repayment plan. 

You Expect A Change In Your Income

One thing to know about bankruptcy is that it requires knowing the certainty of your income. If you are a freelancer that has a contract job that is ending soon, it may be best to wait until you are no longer working to file for bankruptcy. This will give a more accurate representation of what your income looks like since you do not have a steady stream of income coming in anymore. 

You Plan On Moving Soon

Part of the bankruptcy process is looking at what your monthly expenses are. If you plan on moving in the near future, you should wait until after you have moved into your new place to file for bankruptcy. You may have a higher cost for rent or a mortgage, more expensive utilities, and things of that nature based on where you are living. By waiting, all of those new costs will be factored into what you currently need each month to get by with the necessities.

Not sure if you should wait to file for bankruptcy? Meet with a bankruptcy attorney for a consultation.