Just as there are reasons you should file bankruptcy right away, there are times then a bankruptcy case should be delayed. The best way to know is to discuss your financial problems with a skilled bankruptcy lawyer.
Some reasons your attorney may advise you to wait include:
Expected medical bills
Recent credit card charges
Unpaid income taxes
Anticipated receipt of a large tax refund, life insurance proceeds or inheritance
Income fluctuations (Expected decrease in income)
Credit card charges made within 90 days prior to filing may not be dischargeable during bankruptcy. If you have no foreclosure or repossession issues, your attorney may advise you to wait, especially if you have substantial credit card debt.
What about older debts?
Certain tax debts may fall into the category of not recent if you wait to file for bankruptcy. Recent tax debts are not dischargeable and old tax debts are often subject to discharge. The Bankruptcy Code only explains taxes that are not dischargeable in bankruptcy under 523(a) (1) (B) and 523 (a) (1)(C). However, your bankruptcy lawyer can review your tax returns and advise accordingly.
In a Chapter 7 bankruptcy, because medical bills are unsecured debts, they are dischargeable. If you have an elected surgery or an upcoming family pregnancy, filing after medical procedures can allow you to take advantage of bankruptcy to discharge the medical debt.
In some situations transfers made to family members or friends may be subject to being reclaimed during a bankruptcy. People sometimes pay friends or family members because they do not want them to be adversely affected by their financial troubles. What they do not realize is that in the eyes of the court, all unsecure creditors must be treated equally and not given preference. Consequently, the bankruptcy trustee generally reclaims all unsecure payments made to family members within a one year period prior to the bankruptcy case.
Plan your bankruptcy wisely. Harold Shepley & Associates is a Pennsylvania debt relief law firm. Call 1-866-284-7062 or visit us at www.shepleylaw.com to arrange a free consultation to discuss bankruptcy or other financial issues.