Are there Advantages to Filing for Bankruptcy at Certain Times of the Year?
Contrary to what most people believe, filing for bankruptcy does not signify the end of the world. It can actually be good for you. It stops persistent phone calls from debt collectors, wage garnishment, or lawsuits. And if you work with a Mobile AL bankruptcy attorney, they will ensure you do not make mistakes during the bankruptcy filing process. Most credit bureaus will often argue that filing for bankruptcy is a terrible decision as it affects your credit score. But that is only one part of the story. Some people struggle for a long time with their debt, and by the time they file for bankruptcy, their credit is already bad. After filing for bankruptcy, there is no other way to go but up. And once your debt is erased, which is also known as ‘discharge’ in bankruptcy court, your scores go higher.
Filing For Bankruptcy at Certain Times of the Year
A common question that most people ask is whether there is a certain time to file for Bankruptcy chapter 7 Mobile AL. Sometimes, you cannot wait for a specific time of the year, especially if you have run into an unexpected life event. However, there are specific ways you can time your bankruptcy. A lot of bankruptcies are filed around the first quarter of the year. This is often because most people receive their tax refunds then and can afford to handle legal matters dealing with bankruptcy.
Another popular time for filing for bankruptcy is the end of the month, as it could help reduce the paperwork you have to deal with. From 2005, individuals that filed for bankruptcy needed to provide pay stubs for the last 60 days to prove eligibility for filing chapter 7 bankruptcy. Filing during the end of the month instead of the beginning saves you from disclosing another month’s worth of income.
Lastly, if you are about to face foreclosure due to late mortgage payments, consider filing for bankruptcy on the first Tuesday of the month. It is common for mortgage companies to file their proceedings for foreclosure on that date. Hiring a bankruptcy attorney Baldwin County allows you to know when the opportunity is to file for bankruptcy without compromising yourself too much.
Why You Should File for Bankruptcy
Despite all the misinformation out there, you can only know whether filing for bankruptcy is a good option once you have talked to AL Mobile attorneys. They will analyze your current financial situation and then advise you. But with that said, one of the biggest advantages of filing for bankruptcy is that it stops all collection efforts from creditors, giving you time to work on your finances. Another advantage is that it can free you from certain debts, including:
- Credit card debt
- Personal loans
- Medical bills
- Past-due rent
- Civil judgments aside from fraud
- Business debts
Working With a Bankruptcy Attorney
The first thing you should do when filing for bankruptcy is work with an Alabama bankruptcy lawyer. It is easy to make mistakes when you choose to go through this process alone. Even one single mistake can lead to the dismissal of your case. Another advantage of working with an attorney is that they can help you in Mobile Alabama debt consolidation to eliminate unnecessary debt. You do not have to wait till you are financially drained to file for bankruptcy. Filing early can protect some of your finances, such as retirement accounts, from creditors.
Filing for bankruptcy is not an easy step to take. However, sometimes trying to approach the issue alone can make a situation worse. If you are in financial distress, reach out to Loris Bankruptcy Law Firm. We are a law firm that helps individuals file for bankruptcy and guides them in getting back to financial stability.