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Timing of Filing Your Chapter 7 Petition

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The timing of filing your petition for a Chapter 7 Bankruptcy for Consumer debts is very important.   Sometimes the difference of one day could disqualify you from meeting the means test eligibility.

When you file for Chapter 7 Bankruptcy, there is a six (6) month look-back period from the specific date you file for bankruptcy when your household income must be disclosed.

Household income is one of the deciding factors for eligibility.

Some of the circumstances that could also affect the “right” time to file for Chapter 7 Bankruptcy are:

  • Overtime in your last six months pay periods.
  • Unemployment
  • If your spouse was working during that time period.
  • If you lost your job and there was a lump sum payout.
  • If you received a commission during the last six months.
  • If you received a bonus during the last six months.

Before I file a petition for any of my clients, I always evaluate all amounts earned from any source.

It is essential that you hire an attorney that is well versed and has substantial experience with New Jersey Bankruptcy.

I noticed recently that many attorneys are advertising for Bankruptcy on the internet.

You should interview your attorney to gain a level of confidence in their experience.   Before you choose an attorney, you should ask him/her:

  • How many bankruptcies they have filed in the last five years?
  • What is your success rate with bankruptcies you have filed for your clients?

The answers will provide you with a good idea of an attorney’s experience with bankruptcy.

Bankruptcy is an important decision and will have implications for your financial future.   A meeting with a board certified bankruptcy  attorney is key, before you hire them.