Time may pass at a regular, even pace on the clock, but when you’re lying in bed worried about all of the bills, time passes one very slow second after the next. Morning seems about a month away. It may seem as though the only good thing about the late night hours is that the creditors aren’t calling. But come morning, they will be.
More people file for Chapter 7 bankruptcy than Chapter 13. This wipes the slate clean of most debts, allowing the debtor to make a fresh start while retaining certain assets. (Chapter 13 bankruptcy is used by those who can afford to repay some or all of their debt over 3-5 years and may allow the debtor to prevent foreclosure of their home. Chapter 11 is normally used by businesses who need to reorganize because of excessive debt.)
Once the decision has been made to file Chapter 7 bankruptcy, it is necessary to determine the best time to file.
Reasons to File Quickly for Chapter 7 Bankruptcy:
* If the power company is about to turn off the lights and the creditors are harassing non-stop;
* The state court is proceeding against you;
* Non-exempt property is about to be acquired. If the property was not owned at the time of filing, it is protected from creditors.
Reasons to Delay Filing for Chapter 7 Bankruptcy:
* If property is being transferred, a certain amount of time must pass between the property transfer and the bankruptcy filing. If not enough time has passed (up to 2 years), the bankruptcy trustee can void the transfer. The intent is that creditors are not defrauded. This also applies to payments made to some but not all creditors and luxury goods purchased less than 90 days before the bankruptcy was filed.
* It may be necessary to wait until expected debts have been incurred (such as medical bills from a scheduled surgery, for example). Otherwise, those bills will not be included in the discharge order for Chicago Bankruptcy.
* Delay might be needed in order to ensure that unpaid income taxes can be discharged for the maximum amount possible.
Each attorney at Ledford & Wu has many years of experience with Chicago Bankruptcy and consumer rights cases. The firm has nine convenient offices in the Chicago area. Visit their website to learn more about the services that are offered and to schedule a free initial consultation.
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