If you find yourself on the verge of bankruptcy, there are numerous reasons. Most bankruptcies in the United States are the result of medical debt. If you cannot pay your debts, you may be forced to file for bankruptcy. However, it is more important to consider when you will have to file for bankruptcy than why. You should know when the best moment to file for bankruptcy would be. That’s no problem for the Benenati Law Firm.
Pay Slash Or Reduced Pay
Suppose you are thinking about filing for Chapter 7 bankruptcy. Only individuals who can’t reasonably afford repayment over the next 3 to 5 years are eligible for this sort of bankruptcy. The Means Test, which compares your 6-month average income to the state median for a household like yours, will determine whether or not you are eligible to file for Chapter 7 bankruptcy.
The test won’t consider the recent wage drop because it will instead focus on the last six months’ worth of income. As a result, if you want to pass the Means Test, you’ll have to be patient.
Modification Of A Mortgage
Filing for bankruptcy might give you a fresh financial start and help you get back on your feet. While a result, your lenders may be suspicious of you as you strive to get out of debt. Once you are modifying a mortgage, this can be an issue. Your debenture will be canceled if you file for bankruptcy during the bankruptcy process. To put it another way, the bank won’t be willing to negotiate on your behalf either.
More Debts Are On The Way
Are you worried about racking up more debt in the next few days? If so, you’ll have to put off filing for bankruptcy for a while. But even if bankruptcy is permitted, federal law sets rigorous guidelines for the time between discharges. Following are the times when you’ll have to wait:
- After a chapter 7 filing, you will have to wait eight years for another chapter 7 discharge and four weeks for a chapter 13 discharge, respectively.
- After applying for chapter 13, you must wait two years before filing for another chapter 13 discharge and six months before asking for chapter 7 relief.
- The current file will not cover the debts that existed before the filing. If you find yourself in this position, you should speak with a Pittsburgh bankruptcy lawyer.
Motives For Action – Repossessions, Foreclosures, And Collections
When estimating how long it will take to file for bankruptcy, you must consider the number of your assets and property in the number of situations in which you are needed to file for bankruptcy.
While you are filing for bankruptcy, you are entitled to an automatic stay that will give you some breathing room to take care of your property and assets. It is against the law for creditors to try to collect on debts owed to them while a bankruptcy petition is pending.
Filing for bankruptcy may allow you to delay the repossession or foreclosure of your property, which could be beneficial if you are concerned about losing your vehicle or having your home taken away. On the other hand, the alarm system will go into effect if neither the foreclosure nor the associated actions have begun. If you want to avoid danger, you must act quickly whenever the chance presents itself.