First Christian Church

Delaying Filing For Bankruptcy And When This May Be The Best Choice

The world of finances is already complex and it is difficult to understand the details that sustain it even without the involvement of the world of laws. But when this happens, you may find yourself completely confused and not knowing what to do. One such example is when you decide that it is time to file for bankruptcy. While your finances tell you that you simply cannot continue afford living costs and paying for your debt at the same time, the truth may be that filing for bankruptcy now may simply not be that good for you and that you may have to wait a bit longer.

For instance, if you find yourself financially stressed out for a temporary situation (such as losing your job), you may want to wait around a bit more and see exactly how you will be able to manage your finances in the next few months. You may discover that you will even find a new job sooner rather than later and under these circumstances filing for bankruptcy may not even be necessary anymore.

Furthermore, if your recent income was a higher than the usual, then you will want to wait until you file for bankruptcy. The reason you should do so is related to the fact that the court will basically analyze your past six months of financial activity and if they see you had a large income, they may consider that you simply do not qualify for bankruptcy at all.

Also, if you are expecting to spend a lot of money on something soon, then the best thing is to wait until that thing happens and only then file for bankruptcy. The reason you should do this is simple: when declaring bankruptcy, your credit report will be affected for a very long time and you will not be able to get the loan you need for your planned large expense.

Moreover, if you have a lot of non-exempt assets, you may find that filing under Chapter 7 bankruptcy will not benefit you much, since this type of bankruptcy will basically take all of these assets and sell them at a very low price. Considering the fact that your non-exempt assets may be valuable, you may notice that you will get more money by selling them on your own (and paying your lenders on your own as well, instead of letting a trustee handle it).

Either way, remember that a bright bankruptcy will be able to advise you for the best and considering the fact that his job will be defending your interests, you should trust him with your bankruptcy process once the moment comes.