When you are considering filing for bankruptcy, there are things to take into consideration first that could end up having a huge impact on your case. In some situations, waiting to file bankruptcy might be in your best interest. Take the following reasons to heart before contacting an attorney. When you do decide to hire help, find a reputable bankruptcy attorney in Washington, PA, such as the one found at www.mcelrathlaw.com.
If you have just moved to a new state or are planning to move soon, take time to decide which state would offer the best exemptions during your bankruptcy. Each state has their own list of possible exemptions which debtors are allowed to use. If you plan to file in your new home state, you will have to wait until you have established domicile before you can start the process.
If you are getting ready to start a new job that pays less than your previous one, waiting to file bankruptcy might be a better option than filing right away. In order to qualify for a Chapter 7 bankruptcy, you will have to pass a means test. The lower your income is, the more easily you can pass it. The test will take in an average of your recent monthly income amounts. If you wait to add in your first couple of months of income at a lower paying job into the results, you will get a better score and be qualified for a Chapter 7 bankruptcy.
Income Tax Debts
Not many people are fully aware that you can wipe out some or all of your income taxes in bankruptcy. To qualify, the debts have to be old. If you are close to meeting the time requirements for discharging tax debts, it could be best for you to wait until they meet the time limits.
These are just a few of the many reasons you could benefit from delaying filing for bankruptcy. If you don’t know the best time for you to file based on your situation, a bankruptcy attorney should be consulted with.