The financial difficulties you are experiencing may have had you considering bankruptcy for a while, but you might not realize that the time you file can have a positive or detrimental effect on the results of your bankruptcy discharge. In fact, when and how you file for personal bankruptcy might even result in fraud penalties. At the Law Office of Paul R. Idlas, we are prepared to answer the questions of Illinois residents to help them avoid potential penalties and make the most of the bankruptcy process.
You may be aware that bankruptcy might help you shed your insurmountable debt and avoid a home foreclosure. However, nobody told you that timing can be crucial. The following points are important to consider when timing your bankruptcy:
- According to FindLaw, it can be a bad idea to file for bankruptcy soon after running up significant credit card debt. Unless these charges were necessary living expenses, the court may deem them “luxury” charges and rule them non-dischargeable.
- You may want to delay filing for bankruptcy if you recently moved to Illinois, so you can qualify for bankruptcy exemptions in this state.
- If you recently transferred property out of your name, you might be accused of defrauding your creditors, and the bankruptcy trustee may have authority to recover these assets.
- If you foresee unavoidable debt within the next few months – such as an impending surgery – you might want to hold off on filing for bankruptcy, since necessary medical or credit card debt is often dischargeable.
As our page explains, determining your nonexempt assets, dischargeable debt and other bankruptcy issues can be complex, which is why it is often necessary to seek experienced advice on finding the right time to file.