Timing and Filing

[uneasy]

After doing a lot of reading on this site, I get it that timing is really important. It seems like some people really regret not filing sooner, and a lot of other people regret rushing into a bk without doing more homework, meeting with more than one lawyer, and preparing for the 6 months after filing.

Here's my question--how do you know when it is the right time to file? What should be behind you? What should or shouldn't be in front of you? How should you prepare? I would really appreciate any advice on this topic because I am pretty confused right now.

[StartingOver08]

Timing is extremely important for you when filing BK.

You are not alone! Most of us had no idea there were so many 'rules' to filing BK. Most of the timing has to do with two basic areas:

1) Income Issues: making sure your income reflects accurately your actual status as opposed to an artifically high income. You can appear to be making much more than you actually make because the way the income is counted. If you take any distribution of retirement funds (401k for example) in the previous 6 months, that is considered income. Some districts even include tax refunds as income! These are the types of spikes in income you want to avoid.

2) Debt Issues: These items involve, for example, insider payments. Who knew that if you had a friend loan you money 9 months ago and you repayed that loan the following month that it could be an issue? Well, for BK it is an issue because the look back is 12 months. If the money is less than $500 no problem, but most people are not on this board for $500. This is where time can really help you distance yourself from the repayment. There are also preferencial payments, charges within 90 days of filing, cash advances (including balance transfers) within 70 days, transfering of title (autos, homes etc) within X time period. (I don't remember, it could be one year or two years, I have to look it up).

This is not an exhaustive comment. But just an example of what can pop up. That is why this forum is here

[AngelinaCatHub]

[uneasy]

Thanks StartingOver and Hub for taking the time to write such comprehensive replies. This is all good stuff to know. It's great to have those of you who have come out ok the other side share your perspective and experience-it's really appreciated.

[kathy4530050]

I want to say thanks too. Sometimes I feel like I get mixed messages on this forum, but you've managed to explain things in a way that makes those messages make a lot more sense.

[UhOh]

I have to say that we can drive ourselves crazy with worry over bankruptcy. I have gone into the sleepless nights phase now. I have decided to file bankruptcy.

I interviewed lawyers and chose one. Yesterday I paid the retainer and filled out all that paperwork. he had as many questions as I did about details in the petition. My lawyer calmed me a bit but worried me a bit too. Basically he and everyone I have told about it say "it's out of your hands" time to go with the flow. I am so frustrated at that lack of control feeling. I want to be smart but timing is everything.

I cannot take the calls. I hate to think of judgements soon coming. I see no hope of recovery without BK. So today I clarified a few wording issues on my petition and authorized my lawyer to submit it. **GULP**

It is NOT easier and I am not feeling any comfort. I do hope that it comes soon.

One more thing that has been eating at me: I read about people wanting to keep their cars or their vacation homes or whatever. I am at the point where I am ready to tell the trustee to bring a truck and haul it all away. How many people fele that way? Seriously, I have only one thing I would refuse to give up. I would keep my dog. PERIOD. Do you feel this stressed?

[Humonese]

UhOh, I certainly feel as stressed as you but I'm comforted by the idea that this will give me a new financial start, one which I will be much more careful with! I've just started, but I pore over this site daily trying to make sure I'm ready for anything that might come our way...I just want it to go smoothly.

[EricaCallaha]

We all really do in the beginning. Usually it is that feeling of spiraling downward into the fiery pits of credit hell. You dream about overdue bills, 4 cents to live on for the rest of your life, a judge telling you that you have to give up everything and a sense of personal failure because you couldn't pull out of this tailspin.

You sound like you have retained a competent attorney who is answering your questions. That is really important.

It is hard to let go when you have been holding on with white knuckled fists for so long. You will feel better once the papers are filed. The stay goes into place and the calls stop. You will agonize over the 341 and feel like you are going to throw up on the trustee's shoes. You won't and you will live through it. Pretty soon a discharge will come and your new debt-free life will begin. Then you have control.

It will all be okay in the end. Just breathe.

Good luck.

[UhOh]

I'm trying! I really can't wait to get moving on to a fresh start.

[2live]

AngelinaCatHub....your reponse to OP's question

helped me understand this process a whole lot more, very succint and to the point. But I have a couple of questions: At the time of filing (and I understand it's done online by the attorney) is that when you bring a copy of THAT dates bank statement or at the 341?

Also, from the date of filing till the 341 and thru the 60 day wait, will I still have to monitor what comes out of my checking acct like say a misc. purchase for $120.00 at Walmart or online purchase that is clearly not a need? I hear that the day of filing is a "snapshot" of my finances that the BK trustee is going to go by but beyond that date, is there still a need to be diligent/paranoid about my bank acct?
Thank you,
Pat

[OhioFiler]

Smart planning, retaining an attorney and this forum have lessened the stress level I first felt. Actually, suggesting to my wife we should consider BK was the difficult part for me. She was actually relieved.

What I've learned here and the confirmation of this knowledge by our attorney has eliminated most stress. As a commissioned salesperson, my biggest stress right now is NOT making too much money to affect our July filing plan.

[UhOh]

It's official. I filed yesterday. You know how some people say it was the first good night's rest they've had in a long time? Well I tossed and turned a lot last night. I do look forward to a fresh start but it is going to be a hard few months during this process.