People who have seen a significant change in their income due to a sudden surge in expenses or dip in earnings due to loss of job, often wonder if they should consider bankruptcy as a way out of the financial mess they are in. since conditions do not allow them to make payments against any obligations they have, this is a thought worth your penny. Though you might find it compelling to file for bankruptcy just after losing your job, it’s important that you deeply analyze your situation and come up with the best possible solution to your problems. Sometimes, it is important to wait and watch for the situation to unfold as there is a certain time period before you can again file for bankruptcy.
For some debtors facing a reduction in income or a job loss, the dilemma of when to file for bankruptcy is huge. Whether to file immediately after a financial setback or wait for some time before doing so. In case you fear that the worst is not over yet and you might incur more debt in future, it would be better to wait for some time before you file. According to Los Angeles based law firm Recovery Law Group in case, you file for protection just after a financial reduction, any qualifying debts that were incurred up to that point may be eliminated or discharged.
If you file for Chapter 7 bankruptcy, you might have to wait up to 8 years from the time you receive your discharge to file again. In case you are not sure if you will be suffering from any new debt, it is better to wait and watch. In case there are chances of foreclosure or you might have to face legal action (lawsuit), you need to weigh your options and choose your actions accordingly, especially if you wish to keep any property i.e. house, vehicle, etc. with you. Since there a number of solutions available for your problem, it is best to work in close association with a qualified bankruptcy lawyer to come up with the best possible way out considering your circumstances.