Is there a right time to file bankruptcy?

Financial struggles can crop up quickly and often without warning. Thankfully, there are various options that you can pursue to find relief from debt and get a fresh start.

However, many New Mexicans considering these options often wonder: when is it the right time to seek such debt relief?

When should you file?

It is true that timing can play a critical role in the bankruptcy process, especially regarding when you file bankruptcy. For example, before filing bankruptcy, you may wish to consider:

  • If you will be paying taxes soon
  • If you will receive a pay raise or decrease
  • How much money you earned in the last six months
  • There is a risk of incurring new debt in the near future

These factors – as well as many others – could in fact impact the time of year you file bankruptcy. This is why it is often beneficial to consult experienced counsel when considering Chapter 7 bankruptcy or another chapter, so you can ensure you are eligible and move forward strategically to secure your financial future.

Important note: Your circumstances play a bigger role

However, it is not always possible to delay a filing or plan for the precise time to move forward with bankruptcy. For example, no one can plan for a medical emergency that could leave them with a pile of medical bills – and severe debt.

Ultimately, when you file also depends heavily on your specific circumstances, including:

  • If you face the risk of foreclosure
  • If you face overwhelming collection actions
  • If you struggle to pay bills

The decision to file bankruptcy – including when you file – is determined by multiple components. These components are generally particular to your personal and financial situation. So, the right time for someone else may not be right for you. It all depends on what is right for you, to get the debt relief you need.