Some people need to file for bankruptcy immediately ‑ as in today. Their immediate situation is intolerable if they do not declare bankruptcy immediately. An example this might be in the case of a wage garnshment. These wage earners often must get a bankruptcy removal of the wage garnishment in order to survive. (I can do this type of emergency bankruptcy filing in a matter of an hour or so, from my desk, over the internet.)
Other debtors may not be in an emergency bankruptcy situation but have finally realized that they are never going to be able to pay off their mountain of debt. These debtors are hoping for an improvement in their financial situation but need a fresh start. These debtors can file now or wait. For them there is often no rush.
Some people need to wait because they do not pass the means test now but they can expect to be able to pass it in a few months.
If you have more equity in your home than the the exemptions allow you would have a problem filing for bankruptcy. Your equity may be low now, giving you a window of opportunity. But if property values increase it may no longer wise to file bankrutpcy because it may no longer be protected by the exemptions. You might lose your home.
The fact that you made certain purchases recently may dictate the need to wait before your file.
If you purchased something on credit after you knew you were filing for bankruptcy then you could be accused of obtaining goods or services by false pretenses. Expenses for medical bills or other necessities have rarely been found to be a violation of this rule. However a vacation or shopping spree on credit cards could be found to be fraud.
There is a rebuttable presumption that consumer debts totaling more than $500 owed to a single creditor for "luxury goods and services" obtained within 90 days before filing or cash advances more than $750 obtained within 70 days before filing were fraudulently incurred.
Therefore you should probably wait to file if you used your credit cards as described above.
It can be very complicated and confusing. Even if you aren=t sure that now is the time to file there is no harm (and there may be great benefit) in speaking to a bankruptcy attorney now. You can call or e‑mail me for a free consultation.
Take a look at what the financial writer Jane Bryant Quinn says about this subject a recent Newsweek article.
Somtimes a client will have a bankruptcy in the past and is interested in filing again. You must wait 8 years to file chapter 7 after getting a discharge in a previous chapter 7. You must wait 4 years to file a chapter 13 in order to get a discharge in the chapter 13 case.
If you are thinking that bankruptcy, or at least getting a free consultation with a San Diego bankruptcy lawyer, might be a good idea don't wait to speak to us. Call now for a free consultation with a bankruptcy attorney. We will tell you if now is the time to file or if it would be better to wait.