Should I file bankruptcy now or wait

Given the currently financial climate in the U.S. today there are many people that have found themselves in a financial crisis the likes of which no one could have anticipated. Many people have been either, “laid off” or “downsized”. Now many families are faced with the questions like, “Can we afford groceries this month or should we keep the lights on?” And a large number of these people are seniors so the questions they ponder on are, “Can I get my medications this month and keep my lights on?” or “I will go ahead and get some food, keep my lights on and I will get my medicine next month.”

With the rising costs of day to day living and what income is coming in a lot of people have decided to file bankruptcy in Ohio. Although, a good number of people file bankruptcy in New Jersey as well, but the truth of the matter is that this final option is happening to people across the county. But exactly who will it work for?

Before you decide to file it’s best to speak with a bankruptcy attorney in order to way your options. Timing a bankruptcy filing wisely can have a significant impact on your future Bankruptcy will stick with your credit for 7-10 years. An attorney will also calculate your total income; match it up against your total debt. This is called a “means test”. This test is to ascertain whether or not the bankruptcy trustee of the court will even bother hearing your case to begin with. Your attorney my also suggest that you take in to consideration any future debt that you will or are about to incur. Sometimes it’s best to wait until you have exhausted all your financial and credit options and or responsibilities this way it can be included in your bankruptcy. The courts will look at your spending very carefully over a 6-10 month period to see is you are committing any fraudulent transactions. If the court feels as though you are they will not only throw your case out but they might in turn come after you for fraud.

The courts will look at 6 to 10 months of your financial statements very carefully to see if you have committed fraud in your means test. If the court feels as though you are they will not only throw your case out but they might in turn come after you for fraud.

For most people that have found themselves in these types of situations filing for bankruptcy has helped. It gave them an opportunity to get their lives back on track and learn to keep a close watch of how and what they spend. The age of living beyond your means is over. (Not that you should have been living that way in the first place.) However, for people most getting the chance to make life a bit less stressful makes of the difference in the world.

You should also read, “About chapter 7 bankruptcy exemptions” and “Does bankruptcy stop wage garnishment“.