If you have exhausted all your resources and still cannot overcome your debt, the prospect of bankruptcy may be occupying your mind. You may wonder how it works or when the best time of the year is to initiate the process.
Contrary to common belief, there’s no particular timing of bankruptcy proceedings that offers any legal benefits, but that doesn’t mean it is something to ignore. Choosing the right time to file could provide you with personal benefits. Here are two timing considerations to explore.
Waiting until tax refund season
Since filing for a Chapter 7 or 13 bankruptcy comes with some expenses, many people wait until they get their tax refund (if they’re due one) to file. This may give them the means to pay filing fees and other bankruptcy costs.
Getting these expenses out of the way can give you peace of mind and help you focus on a smooth bankruptcy.
Waiting for expected heavy debt
Medical debt is a leading cause of bankruptcy in all states. Sometimes, an emergency leads to expensive medical bills. However, other times, such as with a pending surgery, you may have some warning.
If you can no longer put off a needed surgical or other medical procedure, waiting until you have already incurred this additional debt to file for bankruptcy might make sense.
A cautionary word
Waiting too long to address your debt will only worsen your situation as your bills and financial obligations continue to mount. Before you decide to delay bankruptcy, ensure that you can support your family in the meantime.
Experienced legal guidance can help you make wise decisions about your bankruptcy and help protect your rights during the process.