The Right Time For Debt Relief

It is estimated that nearly one-third of Americans are unaware of their risk of financial hardship. Some people don’t even recognize the significance of their debt burdens until an emergency arises. Many others simply fall into financial hardship suddenly, when the unexpected occurs. Regardless of how a person ends up under water, one thing that is significant is finding an answer to debt problems quickly. However, the timing of certain debt relief tools can be the difference in a successful outcome and a further problem with debt.

Timing is Everything

For those seeking debt relief through bankruptcy, how you prepare for bankruptcy and when to file are important factors. For example, there are important considerations regarding the use of your income and payment of your debts that may influence your bankruptcy case. Paying too much towards your debts or earning additional income in the months leading up to a bankruptcy filing may disqualify you from debt relief under bankruptcy. On the other hand, spending too much on miscellaneous expenses while neglecting your debt obligations leading up to bankruptcy may be viewed as fraudulent. The first consideration is whether your earnings, expenses and debt payments are consistent with recent averages in the 90-180 days leading up to you filing.

The timing of your filing may also be complicated depending on the types of debt you carry and whether you have any jointly held debts. If you are considering filing for bankruptcy due to inability to pay on a secured debt, such as a mortgage or vehicle loan, the timing of your case should be sooner than later. Filing at the earlier signs of financial hardship may help you protect your property while working towards a debt resolution. On the other hand, if you are filing bankruptcy on jointly held debts with a spouse or co-signer, the timing of your case should be planned carefully to avoid any unnecessary consequences for the co-debtor.

If you are seeking debt relief and help with your financial hardship, consult with an Elk Grove bankruptcy attorney today. An experienced attorney will review your options and help you plan the best timing for your case to obtain the best outcome.