Is there a right time to file for bankruptcy?
Yes, timing in bankruptcy can be a very important part of how successful the bankruptcy is. What is a "successful bankruptcy?" To me, a successful bankruptcy is one where the Debtors are able to Discharge all of their debts while at the same time keep all of their assets and/or pay a small portion of their debt back. Many of your prior actions can be detrimental to a successful bankruptcy, but most, if not all, can be improved with proper timing. However, only an experienced Bankruptcy Attorney can advice the Debtors when is the best time to file.
If the Debtor is going to have to pay for a portion of their debts, can the Debtors make those payments in the Chapter 7? Some Chapter 7 trustees will allow up to a year to pay back the value of those non-exempt assets. Some trustees will demand payment in one lump sum. If the Debtor can not pay as required by the Chapter 7 trustee, a Chapter 13 might be the better option. In a Chapter 13, the trustee will require payment but will allow 3 to 5 years to do so.
Before you do something else that might hurt or delay your chance at a successful bankruptcy, give us a call and obtain a FREE CONSULTATION. Freire & Gonzalez, P.A. (305) 826-1774.