When to File Bankruptcy: Is Timing Important? - Frank J. LaPerch, PC

How Important Is The Timing of your Bankruptcy

The average person files for bankruptcy in Rockland or Orange County New York when he or she has no other choice. After weeks or months of harassment from creditors and no other avenues available, they launch their filing. Unfortunately, this might be the worst time of all to file. When you are forced into bankruptcy you lose all control of the situation, which means your situation might be worse than necessary. If you are faced with financial struggles and you believe there is even a chance bankruptcy could be in your future, now is the time to begin your research and consider your options. This allows you to take action at the best possible time.

How do you plan ahead for a potential bankruptcy?

Your first step should be to review your monthly budget. Calculate your monthly bills and other debts, and then review how feasible it is to continue paying this amount of money. If there are consistently problems making ends meet, it might be time to evaluate your options.

Next, consider why your financial situation is less than ideal. Is it due to a permanent circumstance or are you dealing with a temporary setback? For instance, have medical expenses increased your monthly bills or has illness caused you to take time off from work? Have you filed for financial support and you are awaiting payments? These situations are usually temporary and with a little belt tightening, you will likely work your way out of your financial situation. Bankruptcy could still be necessary in the future, but at the moment, it might not be the right choice for you.

If your financial struggles are more the permanent variety, you are facing a different situation. Once you have exhausted all of your options for paying your bills and debts, bankruptcy might be your only option. Those facing permanent situations such as a business going under or a marriage ending might feel overwhelmed by their mounting debt. If there is no reasonable way to bring your budget under control, bankruptcy provides an opportunity to make a fresh start and better handle your financial obligations.

It is also important to consider how you are meeting your current financial obligations. If your situation requires you to remove money from retirement or savings accounts just to make ends meet, this leads to greater problems in the future. You might face penalties by shifting money to make it liquid or eventually run out of savings all together. Unfortunately, the solution you have found to “get by” could eventually create an even bigger problem.

Knowing when the time is right to file for bankruptcy is a difficult challenge. The “right time” varies from person to person and you might need professional assistance determining your next move. We can help you evaluate your current situation and determine whether or not the time is right for you to file for bankruptcy. Contact us today to learn more about how we can help you get a fresh financial start.

Please visit Rockland bankruptcy lawyer Frank J. LaPerch’s Chapter 7 bankruptcy page for more information about filing Chapter 7 bankruptcy in Rockland and Orange County NY.

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