Delay in Filing Bankruptcy
If the delay in filing bankruptcy is long enough, creditors may begin filing lawsuits against you. Lawsuits typically progress into court judgments. Judgments open the doors to wage garnishments, bank levies, and liens against your property. Such events may complicate your bankruptcy and result in increased attorney’s fees.
Further, excessive delay may result in more paperwork. Time passes. Creditors refer debts to collection agencies and/or collection attorneys. The result? Now the bankruptcy petition must not only list the original creditor but also the collection agent and/or attorney. Now lawsuits must be documented. In short, the process is made more difficult and time consuming for both you and your bankruptcy attorney.
Also, your finances may change. In the future, you may obtain an increase in earnings, a bonus, or other financial changes. Such changes may render it more difficult to qualify for a Chapter 7 bankruptcy discharge for example. Of course, decreases in pay can have the opposite effect.
Thus, while there may
sometimes be strategic reasons to delay filing for bankruptcy
protection, for the reasons stated above, it is best to consult
confidentially with an experienced and knowledgeable bankruptcy
attorney sooner rather than later. An ethical bankruptcy
attorney will help you determine if you qualify for any of the various
bankruptcy relief, and help you access the pros and cons and benefits
and risks of filing bankruptcy promply versus delaying the filing.
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