Should I Wait to File Bankruptcy?

Should I Wait to File Bankruptcy?

In some situations, waiting is the smartest legal strategy.

Bankruptcy is not a race — timing matters.

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When Waiting May Help

Waiting may improve your position if:

• Your income is temporarily high

• You recently stopped working

• Your hours were just reduced

• A bonus or severance inflated income

• You expect eligibility for Chapter 7 soon

In many cases, waiting a few months changes everything.

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When Waiting Can Hurt

Waiting may be risky if:

• A sheriff’s sale is scheduled

• Wages are being garnished

• Bank accounts are being levied

• You are about to lose housing or transportation

In emergencies, waiting is not an option.

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Smart Waiting vs. Dangerous Delay

✔ Smart waiting involves planning
❌ Dangerous delay involves ignoring deadlines

A lawyer should help you decide which applies.

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Key Takeaway

The right filing date can mean the difference between Chapter 7 relief and an unaffordable Chapter 13.

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Low-Income Debt Options in Pennsylvania

Low-Income Debt Options

If your income barely covers necessities, traditional repayment plans may be unrealistic — and bankruptcy may or may not be the right tool.

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Option 1: Chapter 7 Bankruptcy (If Eligible)

For low-income individuals with no assets, Chapter 7:

• Eliminates unsecured debt

• Requires no monthly plan

• Usually completes in a few months

Many people are incorrectly steered into Chapter 13 when Chapter 7 is possible.

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Option 2: Non-Filing (Judgment-Proof Strategy)

If you have:

• No garnishable income

• No assets

• No immediate threats

You may legally choose not to file bankruptcy right now.

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Option 3: Consumer Protection Laws

Federal and state laws can:

• Stop harassment

• Address illegal collection

• Correct credit reporting errors

These tools can reduce pressure without bankruptcy.

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Option 4: Strategic Delay

Sometimes the best move is:

• Waiting for income to drop

• Allowing old income months to age out

• Planning for Chapter 7 eligibility

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Key Takeaway

Low income does not mean no options — it means choosing carefully.

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When Bankruptcy Hurts More Than It Helps

When Bankruptcy May Do More Harm Than Good

Bankruptcy is powerful — but the wrong bankruptcy filing can create long-term problems.

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Situations Where Bankruptcy May Be a Bad Idea

Bankruptcy may hurt more than help if:

• You can’t afford a Chapter 13 plan

• You have no assets to protect

• You are judgment-proof

• Your hardship is temporary

• Filing would lead to dismissal

A dismissed case often leaves you worse off than before.

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Common Mistakes That Cause Harm

❌ Filing Chapter 13 just to “do something”
❌ Draining retirement to fund a plan
❌ Filing without understanding eligibility
❌ Rushing to file without strategy

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What a Good Attorney Should Say

A good attorney should be willing to say:

“Bankruptcy may not be right for you — yet.”

Honest advice protects you from unnecessary harm.

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Key Takeaway

Bankruptcy should relieve pressure, not create new stress.

If you’re overwhelmed, low-income, and unsure whether bankruptcy helps or hurts, you deserve honest guidance — not pressure to file the wrong case.

Ginsburg Law Group helps clients understand when bankruptcy makes sense, when to wait, and when not to file at all.

 

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BANKRUPTCY TEAM

AMY GINSBURG – aginsburg@ginsburglawgroup.com

GRACIE KLEIN – gklein@ginsburglawgroup.com

NICOLE LOMBARDI – nlombardi@ginsburglawgroup.com