3 Things That Might Delay Your Ability To File Bankruptcy

Filing bankruptcy is an option you have if you need help getting out of debt; however, there are certain things that might prevent you from being able to file right away. If you are considering this option to get out of debt, you should fully understand that the following three things might delay your ability to file.

You Have Missing Tax Returns

When you decide to visit a bankruptcy attorney to learn more about this process, the attorney will ask to see your last two income tax returns. These are typically needed to verify your income, and they are needed to file. If you have not filed your tax returns, you will not be able to file for bankruptcy right now. To file for bankruptcy, you will first need to get your tax returns prepared and filed, and you will need copies of these returns when you visit the bankruptcy lawyer again.

You Got Rid Of Assets

A second thing that could delay your ability to file for bankruptcy involves assets you recently got rid of. This could include selling the assets for money or giving them to your relatives. In either case, your bankruptcy case would be affected by this. If you gave away assets or sold them shortly before filing for bankruptcy, it can come across as fraud.

If you fail to tell your attorney about these transactions, you could end up getting your bankruptcy case dismissed, or you might be responsible to pay money to your bankruptcy estate to cover the value of these assets.

You Are Expecting A Large Sum Of Money

The third thing that can delay filing for bankruptcy involves a large sum of money you are expecting to receive. This could be money from a lawsuit settlement or inheritance, and the money can affect your case. If you are expecting to receive money, you will need to tell the trustee, and the trustee may have the right to take this money from you.

If this is the case, you may want to wait to file for bankruptcy for 180 days after receiving this money. At this point, the trustee can no longer come after the money, and it will be yours to keep.

Timing for a bankruptcy case is vital if you want the best results from doing this. If you would like to learn more, contact a bankruptcy attorney today to schedule a consultation appointment. 

About Me

Hiring An Attorney For Commercial Bankruptcy

Hi, my name is Mackenzie Kohler and when my business partner and I were having financial difficulties, we decided that we would file commercial bankruptcy. Since a partnership bankruptcy can be very complicated, we hired an attorney to help us with all the legal aspects of this process. Our attorney made sure that everything was handled properly and this put my business partner and I at ease. If you're considering filing commercial bankruptcy, read my blog to learn what to expect during the process and how an attorney can help you. I hope this blog gives you all the information you need about commercial bankruptcy and hiring an attorney.

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