Most people devote all their time on the subject to thinking about if they need to file for bankruptcy, but once you realize that you should file bankruptcy, the next logical question is when should you file bankruptcy. Most people do not realize that filing bankruptcy can be strategic in many situations, and save you months of your time and thousands of your dollars.
Once your financial situation has got as bad as it will get. I have written many blogs on the subject of why people file for bankruptcy and how bad is your financial situation need to be to file bankruptcy, but many do not know when the right time to file its. The reason for filing when you hit rock bottom is, by this point all the debts that you would have incurred because of your situation, should already be there at this point. The reason for this is, you not while file bankruptcy and still have debts that may rear their ugly head in the future. It’s best to wait till all the damages done, then file bankruptcy to move forward.
Before starting a new job is usually the best time to file for bankruptcy. Every state in the country has a different level that is gauged by household size, that will determine if you are allowed to file for Chapter 7 bankruptcy or must file for Chapter 13 bankruptcy. You want to file bankruptcy, so before you get a new job that may put you over the threshold you should contact a lawyer to file bankruptcy. The main reason for this is to avoid filing for Chapter 13 bankruptcy, which shall place you in this predicament, that for 3 to 5 years you are forced to repay a chapter 13 bankruptcy repayment plan that unless you’re facing foreclosure or losing other types of secured property to alone, there’s no benefit to filing for Chapter 13 bankruptcy.
Prior to judgments are attached to the deed of your property. The majority of debtors don’t perceive the significance of a lawsuit judgment on those who own real estate property. It’s bad enough of all you own is a home, and have filed for a homestead act, but if you own real estate that you do not live in this becomes extremely critical to you. A judgment attached to your property prior to bankruptcy, will lock up that piece of property and not allow the owner to sell it, refinance it, or transfer to another person such as a family member. But in the worst case scenarios, especially those not protected by homestead act, that real estate may be sold in an auction, for a significantly lower price the property is worth. In this situation, after the person with the attachment cells your property, pays themselves back, pays back all their legal expenses, the homeowner only gets back the remainder of the foreclosure sale price house that they used to own.
Joseph F. Botelho, Esq.
BOTELHO LAW GROUP
Attorneys At Law
901 Eastern Ave.
Fall River, MA 02723