4 Reasons Not to Delay Your Bankruptcy FilingPeople across the United States find themselves struggling with debt and living under constant stress with their finances. A common truth among many debtors is that they often wait too long before they file for bankruptcy and they could have experienced a better financial situation by filing earlier. If you find yourself in a precarious financial situation, we as qualified bankruptcy attorneys recommend contacting legal counsel as soon as possible. We can help you decide the best course of action and determine if bankruptcy would be a benefit to your current financial situation. Here are four reasons why you should not delay your bankruptcy filing!

Collection Efforts Are Increasing

If you are constantly being plagued by creditors and receiving daily phone calls, you may find yourself experiencing stress and trauma trying to avoid this contact. Creditors can be aggressive and by filing a claim for bankruptcy you can halt any of these collection efforts. Filing as soon as possible can make the phone calls stop and improve your quality of life.

You Can Continue to Damage Your Finances

Continuing to pay debts which are difficult to get on top of will continue to damage your credit rating. If you could discharge these debts with a bankruptcy you could improve your overall financial situation. Some debts may make it difficult for you to pay your home mortgage, child support and other important expenses. Getting on top of these debts and discharging them will finally free up some of the extra money that you need for required expenses.

Now Could be the Only Time for you to Qualify for Chapter 7

Chapter 7 bankruptcy can be a much easier process than qualifying for Chapter 13 bankruptcy. If you can pass a means test for Chapter 7 bankruptcy and your income is below the median amount in Florida, you could completely discharge your debts with some level of protection on your assets. Waiting could mean that you experience an increase in income and you will only qualify for Chapter 13 bankruptcy. Under Chapter 13 bankruptcy you will have a payment plan that is established for paying off a portion of your debts. If you’re in a position to qualify for Chapter 7 bankruptcy, it could be advantageous for you to file early to discharge the majority of your debts without spending years on a repayment plan.

You Could Damage Your Right to Claim by Waiting

You might find yourself in a situation where you have to transfer property or cash to family members, pay off one of your smaller debts rather than paying off all of your debts equally or buying too many luxury items in a month. These are three of the top items that could damage your claim for bankruptcy. If you’re demonstrating that you have accessible income that you can use to transfer money to family members, buy luxury items or pay off some of your debts in full that could minimize your chances that you could qualify for bankruptcy. Showcasing that you have a need for bankruptcy is what’s going to be required for you to qualify for Chapter 13 or Chapter 7 bankruptcy. Demonstrating your need with several months of proof is often a better way to file and the best way that you can receive a favourable settlement from your creditors. You never know what situations may come up but performing these actions in the month before you file for bankruptcy could damage your claim easily.

If you are considering the option to file for bankruptcy and you need access to expert legal advice, contact our staff today. We can guide through your bankruptcy process and help you get the optimal bankruptcy for your situation!