When you are filing for bankruptcy, it is paramount to submit the paperwork at the right time. If you are waiting too long for filing bankruptcy, then it is more likely that your creditors will get more time to maneuver with your filing and the collection agencies will keep hounding you until you pay the debts. If you are filing too soon, then you might miss the chance to get better rates and cost-effective discounts. So, you need to figure out when you should file for bankruptcy. And our Pittsburgh bankruptcy lawyer will help you understand the tricks that will help you get through bankruptcy.Marriage and Keeping Your Home
If you are married, it is obvious that you do everything together. However, for filing bankruptcy, you don’t have to do that. In fact, it will be wise that you don’t file chapter 7 bankruptcy together. In fact, if you both have jointly taken the mortgage and you both have signed the documents, then it is a better idea not to file bankruptcy together. Rather you both should file it at different times separately.
When you file for chapter 7 bankruptcy, you get an automatic stay for 90 days. But if you both file for bankruptcy on different dates, then you will get an extension of 180 days of stay. The bank and creditor will stay away from you and your property while you get six month’s time to be on a solid footing financially.
For chapter 13 bankruptcy, you will get a stay for 3 to 5 years which means only you or your spouse will have to file for bankruptcy to keep your home safe from banks or creditors. Even though the bank will object, you will get enough time to pay your home loan back within the court’s determining repayment plan.
Our Pittsburgh bankruptcy lawyer will suggest you the same.Negotiation for a New Promissory Note
With filing bankruptcy, you get a void on the promissory note on your home loan but not the obligation on repaying the loan. You will still have to pay. But the details of how to pay are gone. When the mortgage lender gets a whiff that you will file bankruptcy, they become more willing to renegotiate the promissory note to get repayment. If the lender is not showing any flexibility, then get help from our Pittsburgh bankruptcy lawyer.Temporary High Income
If you are getting more cash lately and it is temporary in nature, then it is better to wait for a few months to file bankruptcy. The court generally considers the recent few months’ incomes before filing the bankruptcy. If that happens, you will not get a chance to expunge your debts even when you cannot pay them on time.
Filing bankruptcy, after the income goes back to the normal amount, is important. Otherwise, you will be ineligible for chapter 7 bankruptcy and will have to file for chapter 13 bankruptcy which will lead to financial catastrophe in the future.
Come to us at Pittsburgh Bankruptcy Law Group if you are looking for more sound advice in your particular case.
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