Should This Bankruptcy Be Delayed?

Once the big bankruptcy decision has been made, you might think that you are on your way to the financial fresh start you envision. No matter how much thought has gone into your decision to file, though, going ahead with a filing might need to wait if you fit one of the categories below. Read on and find out what kind of things could have you delaying your bankruptcy filing for a bit.

Have You Previously Filed?

You can file for bankruptcy as many times as you feel the need — just not as often as you like. Chapter 7 filers must wait for at least eight years to elapse between the discharge date (not the filing date) of your most recent chapter 7 filing and the date of the new filing. Be sure to do the math and make sure you don't pay an unnecessary filing fee for a premature new filing. Only two years are necessary for a chapter 13 to chapter 13 case and other limits vary when you switch things up and file different types.

Have You Used Your Credit Cards?

Federal law protects not just consumers but creditors too. When a filer uses their credit cards just prior to filing for bankruptcy, it might come under scrutiny. The point is to avoid the appearance of fraudulent credit card activity and that might happen if you've gone over the cash advance limit or the credit card purchases limit and the purchase could be perceived as frivolous. If you have done so, you might need to put your filing off for a few months to allow the charges to fall off.

Is Your Income Too Healthy?

Having a high income is nothing to be ashamed about and it's certainly not a remedy for filing bankruptcy. High-income filers need protection too. Unfortunately, the bankruptcy codes see it differently. If you make more than your state's median income, you may need to pass the means test. If you don't and you expect your income to drop in the coming months, you might have to put off filing for chapter 7. Chapter 13, however, has no income limits.

Avoiding the above is easy if you speak to a bankruptcy attorney first. They can look at your financial situation and advise you on when to file and the type of bankruptcy to file. To learn more about the above issues, speak to a bankruptcy attorney.