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When Should You File For Consumer Bankruptcy?

Deciding when you should file for bankruptcy is totally different from deciding whether you should file for bankruptcy. When people are no longer able to pay their debts that are past due, such as medical bills or credit cards, then Concord bankruptcy lawyers recommend that you file for bankruptcy right now. However, some people still attempt to pay off their debts if they are behind. That might seem like the right thing to do, but a creditor can accept the payment and still hire a collection agency. They may also attempt to sue the debtor for the balance.

At this point, Concord bankruptcy lawyers recommend that you file for bankruptcy protection. They will also be able to show you how to file for bankruptcy. One of the things that has to be taken into consideration is whether the person is even able to file for bankruptcy. For example, if a person filed for Chapter 7 bankruptcy within the past eight years, and he or she received a discharge, then this person will not be able to file for Chapter 7 bankruptcy. One will have to wait until the eight years are over in order for file for Chapter 7 bankruptcy again.

People who want to know how to file for bankruptcy and are trying to find out whether they are eligible should also review the Means Test with their lawyer. It can be difficult to pass the Means Test without the help of a skilled lawyer. The Means Test looks at a person’s income from the past six months, so timing is a major factor. If a person received a big bonus five months ago, then that could make his or her income too high to pass the Means Test. People who receive a large bonus should wait until the bonus income is no longer within that six month-period before they file for bankruptcy.

Deciding whether and when to file for bankruptcy is a very critical decision. That is why you will need the help of an attorney to guide you through this very tedious, time-consuming and difficult process.