Arriving at the decision to file for bankruptcy is not easy. It essentially means that you are accepting financial defeat and that you need the help of the government to gain a fresh financial start. However, this does not mean that you should feel ashamed of needing to file for bankruptcy.
Raising a family and facing unforeseen circumstances can create financial turmoil for anyone. It is important that you thoroughly consider your options so that you can move forward in the best possible way.
Many people hesitate before filing for bankruptcy, and while it is important to think things over, you should also make sure that you do not let your situation get out of control. The following are some considerations to make before delaying bankruptcy.
Have you recently started a lower paying job?
If you are considering filing for Chapter 7 bankruptcy, you will be subject to a means test to decide if you are eligible. This means the test will take into account your financial situation and income during the six months prior to your filing. If you have recently started a new job that pays less, it is potentially a good idea to delay the bankruptcy filing until your new income will be taken into account.
Have you looked into the possibility of modifying your mortgage?
If you are struggling financially and unable to pay your mortgage obligations, you may want to file for Chapter 13 bankruptcy to avoid losing your home. You should look into mortgage modification options before doing so because this could help you to avoid needing to file for bankruptcy.
Do you anticipate future debts?
If you foresee large expenses in the future, you may want to consider delaying bankruptcy until after they have taken effect. This is because Chapter 7 bankruptcy tends to only eradicate debts that existed before the date of filing. This means that if you are subject to further expenses, you may continue to suffer financially after the bankruptcy is complete.
If you are considering when would be the best time to file for bankruptcy, it is important that you think about your specific circumstances. Every bankruptcy filing is different, so it is important to conduct thorough research.