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When Should I File Bankruptcy?


That depends on you and your particular situation. You may choose to wait to file bankruptcy if you are likely to incur sizable new debts in the near future. For example, if you are in bad health and have huge medical bills, you may choose to wait until the illness is cured. It will do you little good to discharge $10,000 in medical bills now and then incur another $10,000 in the next few months. You may choose to wait a few months and discharge all of them. 


Also, under bankruptcy law all nonexempt property that becomes yours through inheritance or divorce within 6 months after the date that you file must be turned over to the court for liquidation. So, if you anticipate acquiring any money or property, you may choose to wait to file. 


Filing bankruptcy will automatically stop all lawsuits and attachments against you. Your creditors must stop all actions against you immediately after a bankruptcy is filed. The only cases not affected are criminal cases and those to collect debts for alimony, maintenance or child support.


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