As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with other major life changes, you aren’t alone. Divorce, job loss, relocation, and major medical issues often precede bankruptcy. These things often get people thinking about the advantage of a financial fresh start and a new life.
If you’re on the precipice of big life changes and also dealing with financial woes, should you file for bankruptcy now or wait?
The simplest answer is “it depends.” There is no one right answer for everyone. But there are a few things everyone should consider and keep in mind before making their decision about filing for bankruptcy or holding off until the other dust in your life settles.
First, you’ll want to evaluate the life changes you’re facing.
For example, if you’re planning to move out of state, you’ll want to assess the bankruptcy laws in your current state and the laws in the state to which you are moving. A bankruptcy attorney can help you determine if your current state or your future home state will have the most advantageous laws regarding your case.
People dealing with divorce will quickly learn there are benefits and drawbacks to filing for bankruptcy.
In many instances, it won’t matter whether you file for bankruptcy or divorce first because your bankruptcy case will end up on the backburner during the sorting of divorce issues. This way everything regarding the division of assets is settled by the time the bankruptcy court gets involved.
But this isn’t always the case. Filing for bankruptcy before divorce might allow for the cancellation of joint marital debts. Filing together might also make your divorce process easier.
The ideal timing of divorce and bankruptcy varies from case to case, so it’s important to consult with your divorce attorney and if necessary, a bankruptcy attorney. Assessing your overall situation is the best way to get a financial fresh start.
When it comes to job loss, timing is more or less an issue of financial concerns. In most cases, a potential employer will not be concerned about you having filed for bankruptcy.
Some jobs require credit checks, so if you’re searching for work in the financial industry, bankruptcy might be a concern.
But for many people, the decision to file for bankruptcy following a job loss and amidst a job search is based on the overall condition of your finances and debt.
If you have more questions about what jobs are affected by bankruptcy, check out this article from Chron.
The timing of bankruptcy and medical issues, much like job loss, is predicated on your financial situation. There is no risk of denial of medical care because you’ve filed for bankruptcy. However, if you’re considering using credit to pay for medical treatment, it might be better to put bankruptcy on hold. On the other hand, filing could make you eligible for financial assistance.
Filing for bankruptcy due to medical bills requires careful consideration of various factors. One reason to wait before filing for bankruptcy is the potential for additional medical issues or bills to arise. Medical emergencies and health issues can be unpredictable, and waiting allows individuals to address any new medical expenses that may arise before filing for bankruptcy.
Furthermore, ongoing medical treatment or procedures may result in additional bills that could be included in the bankruptcy filing. By waiting, individuals can ensure that all outstanding medical bills are accounted for in the bankruptcy petition, providing a comprehensive solution to their financial challenges.
Additionally, waiting to file for bankruptcy allows individuals to gather all relevant medical bills and documentation, ensuring that they have a complete picture of their financial situation before initiating the bankruptcy process. This can help streamline the bankruptcy proceedings and increase the likelihood of a successful outcome.
Overall, waiting to file for bankruptcy due to medical bills allows individuals to address any ongoing medical issues and gather all necessary documentation, providing a more comprehensive solution to their financial challenges.
The bottom line is it’s important to explore your options and discuss the various issues with a bankruptcy expert. They’ll evaluate your situation and help you determine the best possible time to file.
If you have questions about bankruptcy and timing or you’re experiencing major life changes and you have questions about whether now is the right time to file, we can help. Contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.
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