June 28, 2016

When Filing for Bankruptcy, Timing is Everything

Filing Bankruptcy in Pennsylvania

Many people who are experiencing financial problems are unsure when the right time may be to file for bankruptcy. Some people do not believe their overdue debts are “bad” enough to file and may wait too long, while others may file too soon and not predict some issues with premature filings.

Just as in many aspects of life, timing can be an important part of a successful bankruptcy.

When to File Bankruptcy

There are many reasons why it may be important for your to file for bankruptcy sooner rather than later. For example, if your home is about to be foreclosed or your car may be repossessed, filing for bankruptcy can halt those processes and give you additional time to catch up with those payments and help to avoid losing your valuable property.

In addition, if you have a legal judgment pending or ordered against you, you want to file before the other party obtains a lien on your bank accounts or property or a wage garnishment. Garnishments and liens can affect your already suffering cash flow and can make it difficult to pay the costs of a bankruptcy case.

However, in some cases, you may want to delay a bankruptcy filing for a period of time. This can be true if you need to file tax returns for past-due taxes that may be eligible for discharge. There are many requirements for discharging tax liability in bankruptcy, including that the returns must have been filed for that particular tax debt.

You should discuss your tax debts with your bankruptcy lawyer to see if you need to file any returns before filing for bankruptcy. Furthermore, if you do not have the money available to pay for attorney fees and filing costs, you may want to wait to file until you have gathered those funds.

Find out how an Experienced Bankruptcy Attorney can Help You

It can be difficult to know when the time is right to file for bankruptcy. At the Law Office of Michael Alan Siddons, a highly experienced bankruptcy lawyer can evaluate your specific circumstances and help determine whether now is the time to file or whether it may be better to delay a filing.

In addition, our team understands all court procedures and deadlines and will navigate the bankruptcy process for you. If you need assistance in New Jersey, Pennsylvania, or Maryland, call us today for help 610-255-7500.