If you plan to file for bankruptcy, it might make sense to do it promptly. Everyone’s situation is different, but there are some common reasons why people file for bankruptcy immediately. The bankruptcy attorneys at Groce & DeArmon are here to provide clarity. Here are some situations where you may benefit from filing for bankruptcy right away.
You’re in Foreclosure
If the bank is foreclosing on your home, you can suspend foreclosure by filing for bankruptcy. As soon as you file, a ruling called the automatic stay will stop the foreclosure immediately. The bank may file a motion to try to have the stay lifted. However, even if the court lifts the stay, the foreclosure will be delayed by a month or two.
If the foreclosure sale is about to happen, you can file for chapter 13 bankruptcy, which will allow you to work on your mortgage payments and keep your home. You can also file for chapter 7 bankruptcy before the foreclosure ends, which could discharge the mortgage debt outright.
Related Post: Should I File Before or After Foreclosing?
Your Lender Intends to Repossess Your Car
The automatic stay also halts any efforts that your lender makes to repossess your car. In both chapter 7 and chapter 13 bankruptcy, you may be able to reclaim your vehicle if the lender recently repossessed it. Filing for chapter 13 essentially buys you time to assemble the money to make all car payments. Talk to a bankruptcy lawyer at Groce & DeArmon to determine which bankruptcy option is best for you.
Related Post: Your Bankruptcy Options Before and After Repossession
You Received an Eviction Notice
Next, if your landlord is evicting you, don’t sit idle. Filing for bankruptcy will forestall most evictions, but not permanently. Unfortunately, if the landlord already obtained an eviction order from the court, bankruptcy can’t help you. For more information about whether bankruptcy will prevent an eviction, contact a bankruptcy attorney.
You Got a Better Paying Job
If you recently started a higher paying job, this is a reason to file for bankruptcy without delay. To qualify for chapter 7, you must pass the means test, which examines your average income before you file. Higher-income can affect your chances of passing the test. Don’t wait to file. Consult a bankruptcy attorney at Groce & DeArmon.
Talk to a Bankruptcy Attorney
While these are high-pressure situations, it’s best to meet with a qualified bankruptcy attorney before you file. At Groce & DeArmon, P.C., our team has an in-depth knowledge of the legal system, and we’re here to answer your questions. Contact us online or call (417) 862-3706 to set up a free consultation.