Should I File Bankruptcy in NYC now, or should I Wait?

It can be tough holding off when you are in serious financial trouble, but sometimes it can be beneficial to wait on filing bankruptcy.  Depending on your financial activity it could be wise to time your filing date carefully so as not to lose property you may have otherwise been able to keep.  A qualified bankruptcy attorney in New York will usually offer a free consultation to evaluate the timing of your situation.

When exactly to file can be a hard decision to make and there are usually some pros and cons to delaying a filing date.  Your attorney may advise this if you are facing any number of situations.  If your recent income has been unusually high then Chapter 7 protection may not be immediately available to.  If you filed now you would be able to repay a portion of your debt in a Chapter 13 plan instead.  So if you have recently lost your job or had a significant decrease in income then waiting just a couple of months may allow you to automatically qualify for Chapter 7.  Since the bankruptcy “means test” used to calculate your average income will have at least a couple of months of decreased income figured into the formula you will have a much better chance of passing by waiting just a little bit.

If you have some significant property or assets that you need to protect that would be liquidated if you were to file Chapter 7 now, then your attorney may advise delaying your filing date.  If you file now and are expecting a tax return for example the refund could go into the bankruptcy estate to be distributed to your creditors.  If you were to wait to file until after you received your refund then you would not necessarily lose the funds and may be able to use them towards things you really need.  Delaying your filing date might also allow you to strategize with your lawyer on the best way to protect your non-exempt property, or to at least sell some of it instead of losing the value entirely to the bankruptcy trustee.

Making financial moves before a bankruptcy can be tricky, and if done wrong might even get you in trouble or have your case dismissed.  Certain expenses or transfers of money may seem like a good idea, but unless you know the legal ins and outs of bankruptcy in New York they could be very dangerous to attempt without the advice of an attorney.  These mistakes could get you or your family and friends into further financial distress.  It can be very difficult for the average consumer to know what to do or to even weigh the pros and cons of a filing date.  If you think you need bankruptcy help, consult a qualified attorney in New York before making any moves.

Bankruptcy will immediately end the storm of creditor communications, helps people save their property and eliminates unmanageable toxic debts.  It’s the most powerful debt relief solution available in New York City, but getting the most out of it might require a slight delay in your filing date.  While it may be advantageous to delay a filing date, it does you no good to delay speaking with an attorney.  The sooner you get the advice you need the sooner you will be on the road to financial well being. If you think bankruptcy is right for you but have questions about when you should file please contact the Law Offices of William Waldner online or by calling 212.244.882.  We offer free client consultations and have a 99% Chapter 7 discharge record in New York City as of 8/31/16.

This article is intended for educational purposes only.  By reading this article no attorney-client privilege has been created