The Optimum Time to File for Bankruptcy

In the observe at John Carter Morgan, Jr. PLLC, John Morgan is a bankruptcy attorney in Fairfax, Virginia, with a established keep track of document of assisting individuals submitting for Chapter seven and Chapter 13 bankruptcies. In accordance to Morgan, even though there are differing views about when the exceptional time to file for bankruptcy is, there is no hurt in making contact with a bankruptcy lawyer for direction as quickly as you foresee a issue with your personalized finances.


The most prevalent rationale why individuals will file for bankruptcy right away just after economical hardship sets in is due to the fact they are going through some other emergency problem that can be helped by submitting. Either they have obtained a foreclosure coming, they are becoming sued and the court docket day is up coming 7 days, or they have a garnishment of their wages. When anyone is fighting to get a repossessed car or truck back or to quit lenders from garnishing his wages, submitting for bankruptcy can be a single way to do it.

What I Counsel

At my business office, when anyone comes in to see me and talk about submitting for bankruptcy, I will normally explain to him to maintain off. Most of the individuals that I see would be improved off ready four or 5 months before submitting for a Chapter 13 or Chapter seven bankruptcy in Fairfax, VA. Through that time, I would enable clients know which alternatives are readily available.

While my No. 1 rule in bankruptcy is that individuals will have to be guaranteed that they are listing all of their money owed, my 2nd rule applies more to this certain circumstance. I recommend individuals not to pay back any one they really don’t have to in their months primary up their bankruptcy filings. Shell out your mortgage, pay back your rent, pay back your energy, put fuel in your car or truck, put meals on your table, but do not pay back your credit history cards. Do not pay back your doctor’s costs as well—not even $five or $fifteen. Persons think that a tiny payment will get the collectors to shut up, but it will never. They are just likely to maintain bugging you.

For those people who are preparing on submitting for bankruptcy, I propose that they explain to any personal debt collectors who get in touch with four simple issues:

a) Inform them you have an attorney.
b) Give them your attorney’s phone variety.
c) Inform them you are submitting for bankruptcy.
d) Inform them not to get in touch with you again.

Pros to Waiting to File

One particular of the reasons I recommend individuals to just take four or 5 months before submitting for bankruptcy is due to the fact it typically can take individuals that prolonged to save up plenty of income to truly file. Bankruptcy charges and attorney costs can include up promptly, but most individuals can save up plenty of income about the period of 5 months to be ready to afford to pay for it.

Moreover, there are other benefits to ready to file, particularly for any one who owns a household and may possibly quite possibly be moving into into a foreclosure sale. Virginia is what is recognised as “gavel condition,” which suggests that it is a non-judicial condition exactly where there is no court docket method necessary for foreclosure. As an alternative, all a lender wants to do to foreclose on a household is to publicize an auction in a newspaper for four consecutive weeks, and then maintain the auction on the courthouse ways, the church ways, or another general public place.

If your lender has nonetheless to agenda your genuine foreclosure sale, then my most effective assistance is basically to wait around for a even though. In the meantime, I advocate that individuals look at not shelling out their mortgages and just reside in their residences for cost-free. Just take that income that you would be shelling out to your mortgage and adhere it in a espresso can to pay back your attorney. You can also use the saved income to get caught up on necessary costs like car or truck payments, and to pay back for requirements like fuel and meals. Then, when the lender does select a working day and schedules the foreclosure sale, it’s at that point when I would recommend a consumer to officially file for bankruptcy.

In my experience, submitting for bankruptcy typically gives a human being anyplace from six to 18 months of added time in his household. Alternatively than dashing into a submitting, I advocate that clients in Fairfax, VA, make contact with a bankruptcy attorney to decide their alternatives in a bankruptcy circumstance. With the assistance of the attorney they rely on, individuals can use the time before submitting for bankruptcy to save as much income as feasible to use for shelling out off other charges and money owed down the road.

This short article is for informational uses only.  You must not rely on this short article as a authorized impression on any specific details or situations, and you must not act on this details without having trying to get qualified counsel.  Publication of this short article and your receipt of this short article does not produce an attorney-consumer partnership.