Timing when to file bankruptcy is everything. It hurts a lot less if you know what to do. It is a lot less stressful if you know what you are doing and what is happening. File too early and you may not discharge certain debts like an income tax or some student loan debts. Wait too long and the creditor has enough time to attach and sell a home, file a judgment lien, attach wages or attach a bank account. Time what you do in your foreclosure properly and you may be in your home much longer than if you didn’t time things properly. The time limits and filing periods between filing one case and a second case is from date filed to date filed and discharges are:
- 8 years between 7s. -727(a)(8)
- 2 years between 13s. -1328(f)(2)
- 4 years between a 7 and 13 -1328(f)(1)
- 6 years between a 13 and 7(if under 70% plan). -727(a)(9)
The process of filing bankruptcy or fighting your foreclosure isn’t like ordering a pizza. You have to work together with your attorney to get the best results. With a pizza you just order it. If it is rotten it is the stores fault. But with a foreclosure or bankruptcy if you don’t work together with your attorney you will get less than great results. Most attorney don’t advise you. They just file the petition. We prefer to plan what is happening. It isn’t illegal to take advantage of the law, exemptions and time it properly.
Waiting too long to consult a lawyer and you fail to plan how to file bankruptcy to keep the maximum amount of property, pay the least back in a Chapter 13, or you may lose a foreclosure case you could have won. The banks wont tell you what the time limits and filing periods are. They tell you what they want you to know. They tell you what they want you to do. They disseminate bad advise on purpose. They may advise you that you cant file bankruptcy when you can. Often they will pretend that they will modify a mortgage while they process the foreclosure past the time you can file an answer or motion to stop the foreclosure.
Trust the banks and your case may be dead on arrival at your attorneys office. In fact we have seem people empty their retirement or savings and still lose their home. We have seen clients commit suicide or go through a divorce when this didn’t have to happen. It takes about 3-4 hours to read our book and understand the bankruptcy and foreclosure process. The book has sections on how to manage or discharge taxes, student loans, business debt and foreclosures. Kentucky and Southern Indiana clients can schedule a free appointment in our office.
Even if you think you have waited too long it is better to find out from your lawyer than from a police officer carrying your furniture to the curb. One of the things that is certain is that information can either save you or the lack of it can certainly hurt you. Not knowing the time periods and what is happening just means that the collection will happen without your planning it or being able to defend yourself. Sort of like the squirrel crossing the road in front of the car just before that thump thump sound. You don’t have to hire us. But you might want to read the book which will tell you the bankruptcy time limits, exemptions and filing periods for how often you can file bankruptcy. It will tell you whether you should file bankruptcy at the start of your foreclosure case or the end of it. It will explain how to stop the IRS collections just long enough to age the taxes long enough to discharge them in bankruptcy. It doesn’t cost a cent to make the appointment or to download and read the manual. If you drop by the office we will even give you a copy so you don’t have to buy it from barnes and noble for your nook or amazon fire. We will even throw in a cookie or coffee.