Don’t Put Off Till Tomorrow What You Should Do Today! The Repercussions of Delaying a Bankruptcy Filing

Newnan BankruptcyFiling for bankruptcy can be a very difficult and stressful process for many Georgian families who are in a constant state of worry because they cannot meet their monthly bills. Because the decision to “take the bankruptcy plunge” is very serious, it is not uncommon for people to delay filing their case. Nobody likes to deal with tough financial decisions, but often it is better in the long run to face these types of problems head on. Read on to learn about the possible repercussions of delaying a bankruptcy case, and be sure to contact our office to speak to an experienced attorney.

1. You may lose more money in the long run. If you and your family are signing on to pay day loans, cashing in CDs, withdrawing from retirement accounts, taking out credit card cash advances, and other drastic measures in order to pay off your bills, you may be throwing good money after bad. For example, a successful Chapter 7 bankruptcy case will discharge (i.e. erase) your family’s credit card debt. So if you are racking up more debt just to pay off your American Express card, you are not doing your family any favors.

2. Your creditors are not going to go away on their own – and they may get more aggressive in their collection efforts such as placing multiple phone calls or sending letters several times a month. Have you ever heard of a bill collector just giving up? It rarely (if ever) happens. Instead, bill collectors normally escalate their efforts to collect from you which can cause even more stress to your family. Now, you do have the right to not be unduly harassed by bill collectors. However, it may be in your best interest to file the bankruptcy case sooner rather than later in order to stop your creditors from continuing to pester you.

3. Your family may experience a change in circumstances that will prevent you from filing for bankruptcy. For example, in order to qualify for a Chapter 7 case, your family’s income must not exceed a certain amount. If it does, then you have failed the “Means Test” and will be barred from filing for Chapter 7 (though you may be able to file for Chapter 13). So if your family receives an unexpected inheritance or a change in employment, you may still feel strains in your finances but you may technically be barred from filing for Chapter 7.

Or maybe you decide that you want to transfer a specific asset to a friend or family member. Bankruptcy law prohibits certain types of transfers and so if you make one you may either not qualify for filing a case or the transfer may be reversed by the bankruptcy trustee.

4. Your bills will likely continue to rise. As many Georgians can confirm, once the bills get out of hand it can be very difficult to get your head above water. By delaying your bankruptcy case, you may be adding to the overall balances on your credit cards, mortgages, car loans, etc. This type of accumulation may adversely affect your credit score or other parts of your financial profile.

Do you think that bankruptcy may be right the option for you and your family? Don’t delay any longer and contact our office to speak to an experience attorney about your case. We look forward to speaking with you!