Although bankruptcy may appear to be your only option, it’s important to understand some reasons why it may be better to wait. There could be financial repercussions you haven’t considered, or you may need to weigh whether Chapter 7 or Chapter 13 bankruptcy is right for you.
The following are four reasons you may wish to delay bankruptcy:
- Acquiring new debt – If you know that additional debt is coming, such as medical expenses, it may be best to wait because only the debts you have incurred at the time of filing will be covered.
- Income change – Even if you are laid off or receive a pay cut, income over the last six months is used to determine if you qualify to file Chapter 7. Otherwise, you may be left with Chapter 13, which requires some debt repayment.
- Paying certain debts – Everybody’s situation is different, so evaluate whether you would prefer to repay certain debts, like overdue rent, before filing. Be careful about showing preference to some creditors over others. Ask your lawyer before repaying a specific debt.
- Getting divorced – Your financial situation may be in limbo to an extent until a divorce is finalized. Wait until after a settlement is reached to see where you stand.
Filing for Bankruptcy in Texas
According to a National Bankruptcy Research Center report, in 2011, Texas was among six states with filings less than half the national average. While Texas may rank low in bankruptcy filings, the reality is that it can be a beneficial option for some who are unable to meet financial obligations.
If you would like to learn about the advantages and disadvantages of filing for bankruptcy, contact a bankruptcy attorney at Warren & Migliaccio. Our law firm is here to help — 888-584-9614. Don’t forget to order our FREE bankruptcy guide, which can help answer many of your questions about bankruptcy.
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