IS IT EVER TOO LATE TO FILE FOR BANKRUPTCY?
If you qualify for Chapter 7, since it is a liquidation, then there is never a problem when you file. The problem of when you file for bankruptcy is if you want to save property. Thus, when you file for a Chapter 13 is critical.
For example, if you wish to save your home and it already went to sheriff sale, it is extremely difficult to save it since you can only extend the 10 day redemption period for 60 days under the bankruptcy code. When you are in foreclosure, it is very, very difficult to get refinancing, so once a home has gone to foreclosure sale the odds are really stacked against you to get refinancing. The most a Chapter 13 would do is buy you time to stay in the home a little longer.
Another major problem is if your vehicle is repossessed and you wish to get it back. As long as the vehicle has not been sold at auction a Chapter 13 will allow you to get the vehicle back. However, if you file after they sold the truck a Chapter 13 would not get the vehicle back.
Another example is if a tax foreclosure sale is pending this in not a judicial sale and it proceeds a lot quicker than a regular judicial sheriff sale. The only way attorneys have challenged these sales after they have occurred is based on the theory that they have not been sold for market value but that is not an easy burden to establish.
However, it is important to note that once a creditor obtains a judgment and begins a wage garnishment, you can still file any bankruptcy to stop any further garnishment of your wages. Also, if they garnished more than $600 within 90 days of filing, you can get back that money.
Too many people delay in filing bankruptcy and as a result, they hurt themselves and lose property that could have been protected.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 or visit our website at TAIEBLAW.COM, and schedule a FREE initial consultation.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.