Since the beginning of time, and as long as I have been practicing law, people have been procrastinating. Unfortunately people tend to procrastinate themselves out of thousands of dollars that they might otherwise have been able to keep in their pocket. For instance, did you know that when you file for bankruptcy, retirement funds are completely protected from your creditors? Many people view filing for bankruptcy as a last resort and will do anything they can to avoid it. While that is noble, many people pay down their savings and drain retirement accounts that could have been retained in their efforts to pay down debt.
After I meet with somebody for a free bankruptcy consultation, I might not hear from them for a month, 6 months, or even over a year. The reason that I usually get for why it took them so long to call me is that they were trying to take care of the problem on their own. However in the meantime these people have now been garnished or even have had liens placed on their home. Also for people with higher incomes who have to file for chapter 13 bankruptcy, they need to realize that there are debt limits for secured and unsecured debts. Waiting to file for bankruptcy can compound debts by the interest owed on the accounts which can in turn make somebody no longer eligible to file for chapter 13 bankruptcy, essentially eliminating their chance at gaining relief from their debts through bankruptcy. Therefore waiting to file for bankruptcy may not make a whole lot of sense.
For others it may make sense to wait to file a bankruptcy. Some common reasons to wait to file for bankruptcy may be that in order to qualify for a chapter 7 bankruptcy your income needs to be lower than what is at currently based on your last 6 months of income or you may need to put more time between the transfer of an asset or charging a credit card to avoid any kind of objections to a bankruptcy filing for fraud. If you have questions about filing for bankruptcy you should talk to an bankruptcy attorney near you who can go over all of your options and answer all of your burning questions.