Bankruptcy To Be Filed? What About Timing?

Bankruptcy To Be Filed?  What About Timing?

Is there always a reason to hurry up the bankruptcy filing?  Does the timing of a filing matter? Timing depends upon your objectives, and filing quickly sometimes is important when the client needs protection from creditors right away.  This happens when one is trying to stop an impending foreclosure sale, a wage garnishment, or seizure of a bank account. When creditors are moving to seize assets, immediate bankruptcy protection may be needed.

But when the creditors are not threatening immediate action, waiting is something the answer. This may be the case in various circumstances:

  • Tax Debts.  Income taxes are generally nondischargeable in bankruptcy, but there are critical exceptions, and most depend upon timing of the bankruptcy filing. You may have to wait a short while, or as much as 3 years so that taxes may become dischargeable. It is sometimes worth the wait.
  • Assets.  The amount of assets that someone in bankruptcy may protect may vary from state to state.  If your assets are worth substantially more than you can protect, this you may have to take the time to legitimately utilize your assets for your benefit today, rather than to lose them in a bankruptcy.  As a result of doing so, you may need to wait to file bankruptcy fro a period of 1 to 10 years, depending upon the facts involved. However, with proper planning, it will be worth it.
  • Asset Transfers:  If you have transferred assets – your home, cash, stock, or vehicle – to a trusted friend or family member to keep it out of the hands of creditors, this creates timing issues.  This frequently happens when individuals are being pursued by creditors and are afraid that the creditors will seize their property.  This creates a need to wait before filing bankruptcy.

Just like all things in life, timing can be everything.  It is always best to file a bankruptcy  case when you and your lawyer have considered all the possibilities.

Knowledge is power.  Contact us for answers to your questions.


Downgrade for the Banks

More trouble for the economy?  Now, after hurting the consumers’ credit ratings for so long, while at the same time hurting their own balance sheets, it appears that certain banks are getting a taste of their own medicine.  Moody’s has recently downgraded the credit worthiness of certain banks, as described in a recent article.

What does this mean to individuals and businesses?  It may mean that getting loans may get tougher, as banks raise funds to lend out to third parties.  It could mean that banks will start liquidating collateral faster to get cash in and then to seek to lend it in more profitable ways.  In any event, it’s not good, and affects all of us.

Knowledge is power.  Contact us to see what we can do to help you.


While foreclosures were down for the first quarter of this year, according to recent figures in an article in the Boston Globe, foreclosures in Massachusetts are back up in number.  There is no doubt that there is still a long way to go for recovery and balance in the economy.  But people need to know their options.

Knowledge is power.  Contact us to get information.


It’s not a good thing for any one individual to go through.  But the truth is that foreclosures are on the rise again, as the article describes.  Careful planning is important for anyone going through the process, whether or not the plan is to save the house, to sell it, or to let it go.  There are consequences often not considered without professional advice, from deficiency claims and lawsuits to tax implications.

Knowledge is power.  Contact us with any questions that you may have.

Divorce and Finances

It is fairly commonly known to divorce lawyers and bankruptcy lawyers that the stresses of one form of issues faced by clients (divorce or bankruptcy) can and often does lead to the other situation.  Certain factors are obvious, such as the post-divorce requirement to support two households on the same pre-divorce income.  Similarly, the financial stresses leading to bankruptcy can and do often take their toll on personal relationships, thus leading to divorce.  In any event, there is a good article about preparing yourself for some of these issues.

Remember, as we say, knowledge is power.  Contact us to discuss your issues.

Bankruptcy Filing Numbers

Well, it appears that the number of cases being filed in 2012 is down from 2011.  This is based upon information in a report issued by the US Courts through March 2012.

What does it mean?  Unemployment is still up.  Real estate prices are not going up as foreclosures continue to rise in order to relieve the backlog of distressed properties on the market, as stated in a recent article.  Although interest rates are down, that is little help when there is no equity in properties

The reality may be tough for anyone.  There is still a long way to go.  If there are questions that we can answer for you, please contact our office.

Knowledge is power.