If you’re dealing with a heavy debt load and aren’t sure if you want to pursue bankruptcy as an option, it may be a good time to sit down and think about the best time to file for bankruptcy and if this is it.
Bankruptcy can help you eliminate debt quickly, setting your finances back on track in a shorter amount of time than if you had to pay all your debt back. Depending on the form you choose, you could be out of debt in just a few months or be on track to pay back a portion in the next three to five years.
One question a lot of people have is if there is a better time to file. Here’s what you should know.
The right time to file for bankruptcy? It could be now
Most will be told that it’s better to file sooner rather than later, because filing at the first signs of trouble may help you preserve more of your assets.
If your income is low and you meet the requirements for a Chapter 7 bankruptcy, you may not have to liquidate many or any of your assets. You could have your debt eliminated within around four to six months, too.
For Chapter 13 bankruptcy, you’ll be on a repayment plan. You still have the potential to stop vehicle repossessions and foreclosures with this kind of bankruptcy, helping you preserve important assets that you’ve worked hard for.
Filing as soon as you can see you’re having trouble making ends meet is helpful. It can also be helpful to file during different times of the year. For example, many people choose to file for bankruptcy after tax season, because they may get a refund to help them either avoid bankruptcy or help them pay for one.
Your circumstances are unique
Everyone’s situation is different, so the right time to file for you may not be the right time for someone else. Get to know more about the options first, and then consider your financial circumstances to decide if this is the right time for you.