About Timothy Baland

I am often asked when is the right time to file for bankruptcy. The short answer is that the right time to file is probably now, with some important exceptions. For example, you might not want to file immediately if you recently made a large payment to an unsecured creditor or made a major purchase that you do not routinely make. Still, for most people, the right time to file for bankruptcy is now.

Declaring bankruptcy does not mean that you are giving up. Rather, you are taking a positive step to end your debt. Bankruptcy is not surrendering to your creditors; it is really using the law to give you a fresh start. If you are tired of getting collection letters collection calls, have been sued, or have a judgment against you, now is the right time to file. Filing for bankruptcy will put a stop to collection calls, collection letters, and – if your bank accounts, wages, or other property were garnished or levied within 90 days of the date that you file – may mean that you either get money or property back.

Individual persons can file for either chapter 7 or Chapter 13 bankruptcy. Individuals who make their living from farming or fishing have a few different options as well. Small businesses are limited to filing for Chapter 7, although businesses can also file for chapter 11 – but chapter 11 is far beyond the scope of this blog post. Personally, I like chapter 7 better because it wipes all of your debts out at once and is a lot faster than chapter 13. However, your net income (your gross income after payroll deductions and expenses) has to be below a certain level for your family size in order for you to qualify for Chapter 7 bankruptcy.

I prefer to file for Chapter 7 bankruptcy on behalf of the debtor, unless there is a good reason for choosing chapter 13 bankruptcy. A good reason for choosing chapter 13 would be if the debtor makes too much money to qualify for Chapter 7, or if the debtor has a lot of equity in a house. Your bankruptcy attorney will be able to explain to you the differences between chapter 7 and Chapter 13, and which one is a better option for you.

Baland Law Office, P.L.L.C. represents consumer and small business debtors in both Chapter 7 and Chapter 13 bankruptcy proceedings. Please note that only individual debtors can file for Chapter 13 bankruptcy relief, not businesses.