Is it best to file as soon as possible to file an Arizona bankruptcy?
It depends. In some cases, immediate filing may be in your best interest to avoid losing property. In many other cases, you may be better off waiting to file so that you ensure that you are able to come out of your bankruptcy with a fresh start, or to ensure you do not lose a future interest, such as a tax refund.
If you are in danger of immanent foreclosure, repossession, execution sale, eviction, or utility shut-off, you may have little choice but to file immediately to prevent such actions from being taken. Bankruptcy may give you the opportunity to cure your defaults, reclaim certain property, or to stay a state court proceeding. You may even receive extensions on periods of redemption or statutes of limitations that are near expiration.
On the other hand, there are several situations in which you may want to wait to file. For example, if you have very few or no non-exempt assets that may be subject to creditor claims, you are not in danger of creditors’ collection attempts resulting in loss of any property or income at this time so there is no need to file bankruptcy immediately. Further, filing bankruptcy at this time may leave you in a worse position should a medical or other emergency occur and force you to incur more debt after filing. Additional reasons to wait include avoiding automatic stay limitations, avoiding presumptions of abuse and lowering disposable income.
However, if you do decide to delay your filing, it is important you do not incur any further debt that you cannot or do not intend to repay, because these debts may be declared non-dischargeable when you eventually do file.
The determination of the most appropriate time to file is very complex and dependent on several factors so it is advisable to consult a Tucson bankruptcy attorney before making this decision.