Filing for Chapter 7 bankruptcy is a big move, and you don't have to do it in a rush. In fact, you're often better off waiting until the right time to file. But the best time is unique to each filer. Before filing, there are a few things to keep in mind.

The Craig Black Law Firm helps debtors considering Chapter 7 tackle mounting debt. I take a personal approach to each case and can advise you on the best timing. If you're considering Chapter 7, give me a call at 678-888-1778 or complete my confidential contact form.

Passing the Means Test

Not everyone can file Chapter 7 and receive a discharge from their debts. You'll need to qualify, which means passing a means test. Before you file, you can use a means test calculator on the U.S. Courts website to determine whether your income and expenses qualify you.

The means test calculator will ask for your monthly income, which you'll calculate on the Statement of Your Monthly Income. Here, you'll list your total gross wages, salary, tips, bonuses, overtime, and commissions for the past six months. If you've experienced a recent drop in income, you may want to wait to file. However, if you're facing a lawsuit, wage garnishment, or other legal action, filing sooner could be a way to rebut the presumption.

Timing Around Major Purchases

Your income won't be the only factor the courts consider. Any major purchases made in the past few months will be scrutinized, and you may be denied if it looks like you racked up bills in the hopes that they'll be discharged.

On the other hand, though, if you have an unavoidable medical event coming up, like a major surgery, sometimes it makes sense to get that out of the way before filing. You'll be responsible for any medical bills not covered by your insurance after you've filed.

Working Around Tax Season

Tax time can also put a wrinkle in your bankruptcy filing. If you're due a large tax refund, the court could seize it to pay your creditors. If you've received a refund in the past six months, the trustee will ask about it. Most refunds can be exempted with proper counsel from a qualified lawyer.

Filing well ahead of tax season could help you preserve your refund. Once your bankruptcy has gone through the system, any further income is yours to keep. If it's too late and the money is already in your account, unspent, I can check to see if exemptions may apply to the funds in that account.

How the Craig Black Law Firm Can Help

The Craig Black Law Firm works with clients to find the optimal time to file for Chapter 7 bankruptcy. I can also answer your questions about the means test and exempt assets. If you're considering filing, give me a call at 678-888-1778 or complete this confidential form and provide some details about your situation.