The answer to this question varies significantly depending on your individual circumstances. Most of the time, the best answer is “as soon as possible.” It is often easier to file sooner, rather than later. With that being said, many factors come in to play in deciding when is the best time to get your case filed.
If you are facing a lawsuit, wage garnishment, or sheriff sale on your home, you will most likely need to get your case filed immediately. Filing bankruptcy will “stay,” or stop any collection activity, including lawsuits, garnishments and sheriff auctions. In addition, filing now will stop your creditors from calling and sending your account to collections.
Sometimes it is better to wait to file your bankruptcy. A good example would be when you are waiting to receive your tax refund from the IRS. Depending on how much your refund is, the bankruptcy trustee can keep those funds to give to your creditors if you have not already received the refund before filing your bankruptcy. If your creditors have not yet filed a lawsuit to collect on their debt, it is advantageous to wait to file as long as possible to protect assets that may not be protected if your case is filed immediately.
With all of this being said, it is best to contact a bankruptcy attorney to find out for sure when it is the best time to get your case filed. At the Law Office of Wayne P. Novick, we can help you decide if bankruptcy is the right decision for you and when would be the best time to file your case. Please call our office for a free consultation at 937-436-2606.