Bankruptcy is a last resort option for people dealing with large amounts of debt that they are unable to repay. If you are dealing with bankruptcy, you may wonder when the right time to file is.
Knowing When To File
Bankruptcy is a huge decision and technically you can file any time you like. However, some circumstances may influence how much money or assets you lose, or how a judge sees your case.
Making Large Purchases
For example, if you recently made luxury purchases on credit, it may be smart to wait a while. The court may think you are trying to make large purchases on purpose so that the court can forgive them afterward. The law views this as fraud.
Selling or Gifting Assets
If you've sold or gifted property or assets for much less than they are worth, you might want to wait to file bankruptcy. The court may interpret this as a way of trying to protect your assets or to qualify for other types of bankruptcy for which you may not have before.
Paying Preferred Creditors
Paying a large amount on a single loan or to a friend or family member can also have consequences. The court may decide that you were paying a preferred creditor and ask them to return the funds.
Dealing With Bankruptcy Timing
When you are dealing with bankruptcy and want to know when you should file, the best way to know is to discuss your individual circumstances with an expert like https://www.brentgeorgelaw.com/