When is the Best Time to File for Bankruptcy?

Under federal law everyone has the right to file for bankruptcy relief from their creditors, and doing so can be very effective in resolving financial problems. However, in most cases, you can only file for Chapter 7 bankruptcy once every six years and Chapter 13 bankruptcy once every 8 years. With the help of an experienced bankruptcy attorney, it is possible to do bankruptcy pre-planning to maximize the benefit of filing for bankruptcy. For example, if you anticipate having to take on unavoidable new debt in the near future, it may be a good idea to wait to file. Any debt incurred after you file for bankruptcy does not get “wiped away” and you will still be responsible for it.