Bankruptcy when to file

why bankruptcy is good
Bankruptcy when to file

One of the most common search terms in the bankruptcy world is: bankruptcy when to file.  There are some many variables in that question that book could be written on the subject.  In some situations sometimes there is the right moment to file for bankruptcy. It could make sense to hold off filing to be able to save property you would otherwise lose such as a tax refund or an inheritance.   So when is the right moment – that’s the big question that takes hours of work and pages of documents to answer.  Certainly you have a right to get your financial situation in order to file a bankruptcy…some creditors, however, might take issue with this planning idea.  Again there is a whole body of bankruptcy law that is devoted to this bankruptcy planning notion.

Sometimes people file earlier than they need to so they can avoid foreclosure but that can make it difficult to get a mortgage modification. Sometimes lenders won’t change your mortgage after you’ve filed for a bankruptcy but other times they may be more willing to offer you a mortgage modification if you are in a bankruptcy.  Some people also wait too long to file bankruptcy for example they wait until a judgment is enter against them and a judgment lien placed on their home.  Although the judgment lien might be able to be removed during the bankruptcy process it is an added expense that would not have to have been incurred with proper timing of the filing of a bankruptcy.  Also some people wait too long to file and their income pushes them into a Chapter 13 bankruptcy that is not in their best interest.  All these and a host of other issues need to be considered when you ask bankruptcy when to file.

Since there is no easy answer to this question bankruptcy when to file it is advised that you speak with an experienced bankruptcy lawyer that can analyze you individual circumstance and give you some guidance.

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