The Ideal Moment to File for Bankruptcy

1. The Ideal Moment to File for Bankruptcy When financial difficulties arise, people most often file for bankruptcy because they are in an urgent situation that can be resolved by doing so. Either a foreclosure is imminent, they are being sued and the court date is next week, or their pay has been withheld. Someone who wants to get their repossessed car back or stop their creditors from garnishing their salaries may utilise bankruptcy as a method. What I Suggestion I often tell someone who comes to my office to wait when he wants to talk to me about filing for bankruptcy. Most of the clients I work with would be better to wait four or five months before filing chapter 7 bankruptcy in virginia,. I would then take that opportunity to discuss the options with them. People must be careful to include all of their debts when filing for bankruptcy, but my second bankruptcy rule is more pertinent in this case. I advise customers to forgo any payments they are not compelled to make in the months prior to declaring bankruptcy. Pay your mortgage, rent, electricity, gas for your car and food before you pay your credit cards. It is not required to pay your doctor's fees, not even $5 or $15. It's a common misconception that a little payment can stop debt collectors from calling, but this is inaccurate. They'll simply keep bothering you, though. I encourage anyone considering bankruptcy to tell any debt collectors who calls four things in particular: a) Inform them that you are represented by counsel.

2. b) Provide them with your lawyer's contact details. c) Let them know you're filing for bankruptcy. d) Ask them to stop contacting you. Advantages of Postponing Filing One of the reasons I advise waiting four to five months before filing for bankruptcy is because it frequently takes people that long to save enough cash to really do so. The majority of people are able to accumulate enough cash over the course of five months to be able to meet bankruptcy fees and legal costs, despite the fact that they can quickly add up. Delaying filing has further advantages, especially for homeowners who may soon be subject to a foreclosure auction. Virginia is a "gavel state," or a non-judicial state where a court process is not necessary for foreclosure. Instead, all a bank needs to do to seize a property is to arrange an auction on the steps of a courthouse, a church, or some other well-known location, and then publicise the sale in a newspaper for four consecutive weeks. If your bank hasn't established a date for the actual foreclosure sale, my best advice is to just wait. I suggest that people consider delaying their mortgage payments in the interim and just staying in their houses rent-free. Put your mortgage payment in a coffee can and use that money to pay your lawyer instead. You may use the money you have saved to pay off obligations like vehicle loans as well as for other necessities like food and gas. I believe that when the bank chooses a date and schedules the foreclosure sale, the consumer should formally file for bankruptcy.

3. My experience show that filing for bankruptcy often results in a person staying in his house for an additional six to 18 months. Before rushing into a filing, I counsel clients in Fairfax, Virginia to consult with a bankruptcy attorney to understand more about their options. With the help of a reputable SRIS PC — 888-437-7747 attorney, people can use the time before filing for bankruptcy to save as much money as they can, which they can then use to pay off future expenses and debts.