Is it Better to File for Bankruptcy at the end or the beginning of the year?

couple asking for help after bankruptcy

Timing a Bankruptcy for Best Results

Timing a bankruptcy filing can be affected by a lot of different conditions, but trying to gauge whether filing in June is better than December in a given year really doesn’t make much of a difference in and of itself. However, initializing a filing with a Brooklyn bankruptcy law firm prior to other financial events occurring can make a big difference in what one might be able to hold onto or avoid in terms of collections, loss of assets or harassment.

Why Hold Off on a Bankruptcy?

Folks who are facing a financial cliff would definitely be in their right mind to ask a Brooklyn bankruptcy attorney why they should delay a bankruptcy filing any longer than they have to as it just allows collectors to have more time to create trouble. However, if there are big financial activities on the horizon, delaying the filing could allow a person to utilize their assets far more effectively than leaving it up to the court.

For example, if a person knows that his or her income tax filing is going to result in a big tax refund, filing a bankruptcy filing ahead of time simply leaves that refund to the discretion of the court, according to many a bankruptcy attorney Brooklyn expert. Instead, taking care of one’s tax obligations first could put that refund squarely in a person’s bank account to directly eliminate issues, pay bills or pay off costs that won’t be possible once the court process begins. Similar big financial situations coming up quickly could even make it possible to avoid having to file with a bankruptcy attorney Brooklyn NY resource altogether.

Timing a Filing to Actual Income

The court typically applies a “means” test to a filer from what many bankruptcy lawyer Brooklyn NY litigators have seen. If their income over the last half of a year is higher than the court’s threshold, the filer could be barred from filing for Chapter 7 bankruptcy, which wipes out debts entirely. If a person can wait longer with lower income or no income, that time distance can move the filer into the lower part of the means test mathematically, making Chapter 7 a very viable solution for bankruptcy.

Playing Bad, Legally

Some big medical expenses might be worth waiting for in terms of filing. If you know bankruptcy is an inevitability but you also have a procedure or surgery coming up that’s going to cause a costly copay or bill, it might be worth waiting. Have the procedure, recover and then file. Technically, the medical cost would end up being debt that becomes part of the bankruptcy as well if unpaid. While the medical provider ultimately won’t be paid in full, it’s also technically possible because of the nature of health needs and the filer’s protection in the bankruptcy process once filed. Many medical providers will ask patients to sign an agreement to pay before services, but it has no binding power if a bankruptcy is filed afterwards. The federal court can nullify any such agreement.

The Ursulova Law Offices are available to help if you’re considering bankruptcy and wondering how to get started with a Brooklyn bankruptcy lawyer or when to file. Bankruptcy is never a pleasant affair for anyone involved. However, the Ursulova Law Offices regularly help clients achieve strategic benefits from filing, particularly with regards to when a filing can have the greatest impact and advantage for the client in the months before and after filing. To find out more, especially for your specific case, call to make an appointment and an initial consultation. You’ll be surprised at what your options are, even in financially tough times. 

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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