Is there any reason to file on the first of the month?

[kathy4530050]

I have a feeling this is a dumb question, but I've consulted with several lawyers now and when it comes to deciding when to file, they have each said something like, First of January, First of March, First of Whatever. I didn't think to ask any of them, but why the first? If I'm ready on the 15th or any other day of the month, can't we go back 6 months from THAT date?

[DaisysMom]

I think I have read on here that they start the 6 months from the month preceding when you file. Like if you file in June...they would look at your 6 months from May 31 back. So it would not matter what day of the month you file, except for looking at the balance of your checking...which should have as little as possible in it on the day you file.

I think that is the way it works. Correct me if I'm wrong.

D.....

[LuciluS]

I think I have read on here that they start the 6 months from the month preceding when you file. Like if you file in June...they would look at your 6 months from May 31 back. So it would not matter what day of the month you file, except for looking at the balance of your checking...which should have as little as possible in it on the day you file.

I think that is the way it works. Correct me if I'm wrong.

D.....

That's what our Attorney told us. He only files bankruptcies on the last day business day of the month. Hopefully, we will file on 9/30/09 using March-August 2009 income.

He also told us to use our last 12 months, Sept. 2008-Aug. 2009, for our expenses (i.e. utilities, groceries, health insurance and the biggie for us is medicial bills!).

Luci

[JoeBankrupt33]

I don't know how much a difference it makes. If I had it to do all over again, I would have filed the day after my pay period ended because of the way Colorado calculates earned but unpaid wages (it may be the same in other places, but I dont' know).

Also, a good time of year to file appears to be March or April, after you have already spent your tax return, but early enough so that the trustee won't get enough of your refund for the following year. If you file late in the year or early in the year before you get your tax refund, then the trustee can take most or all of your refund, unless it's exempted.

Many states have good enough exemptions that you don't even need to worry about cash in the bank or getting a tax refund, so the time of year has less impact.

Filing on the last day of the month makes sense to me, because you have the entire month to make sure you have your pay-stubs, bank statements, etc from the previous month. If you get a paycheck direct deposit at the end of the month, you probably won't have the paper stub in your hand to file with the petition on the first of the month.

[lrprn]

...why the first? If I'm ready on the 15th or any other day of the month, can't we go back 6 months from THAT date?

The bk law states that the six month lookback is full calendar months. In other words, if you file on April 1, the lookback period is October 1 - March 31. If you file on any other day in April, the lookback period is still October 1 - March 31.

[southernbelle]

My atty was ready to file any time I wanted and specifically asked if I had a date preference because his computer system would allow him to input the date to happen automatically (Cool huh?).

He also urged me to make sure I had almost nothing in my bank account the day I filed because the Trustee would want to take it, therefore I filed the day before my mandatory direct deposit paycheck hit my account. The day I filed I had a negative balance due to an overdraft. The timing was perfect and the paycheck deposited the next day was never questioned by the Trustee.

[StartingOver08]

My attorney also said I could file whatever day I wanted, and yes the lookback period does not include the income from the filing month as previously posted. I know that I filed on Sept 30 because I had just had a closing a few days before and did not want to have that income in my lookback period - so I had to be filed before Oct 1.

You are self employed so it is easy for you to run the figures to see what your median income will look like. You are dealing with a large receivable in February - just make sure your median will be in the right range for your filing. Generally you know your income projections when you are self employed. I would say one of the most common mistake made is filing too fast - but that is my opinion only.

Maybe it is a convenience factor for the attorney? Who knows, but there have been several people on this forum that indicated their attorney had a preference for a particular date to file.

[OhioFiler]

My attorney also said I could file whatever day I wanted, and yes the lookback period does not include the income from the filing month as previously posted.

Maybe it is a convenience factor for the attorney? Who knows, but there have been several people on this forum that indicated their attorney had a preference for a particular date to file.

All my attorney said was , "Don't file on Friday the 13th!"

[kathy4530050]

Thanks for the input everyone. There appears to be no reason to file on the first of the month and that works for me!