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How Long Can I Wait to File Bankruptcy?

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If creditors are moving to seize your assets and you are facing foreclosure, levies and wage garnishment, then get yourself to a certified Montana bankruptcy lawyer ASAP. But, if creditors are just starting to sniff around and they haven’t started making your life miserable quiet yet, there are a few viable reasons for delaying a bankruptcy filing.

Taxes
If you owe significant taxes you may want to wait up to three years to file bankruptcy because income taxes are generally non-dischargable in bankruptcy. However, there are some exceptions. Your friendly neighborhood certified bankruptcy lawyer can help you determine how taxes apply to your case.

Assets
If your assets are worth substantially more than what debtors are allowed to claim as exemptions in Montana bankruptcy court, then you may need to do some asset protection planning before you file bankruptcy. Don’t start shifting around your assets without getting proper guidance from an experienced Montana bankruptcy lawyer. There are very specific rules that apply toprotecting assets from bankruptcy, if you break those rules you may make the situation worse and you will have to wait up to three years to file bankruptcy.Contact Cossitt Law for details on a viable asset protection strategy

Fraudulent Transfers
We regularly warn our bankruptcy clients against moving property into someone else’s name to avoid repossession — this includes vehicles, stocks, cash, etc. This kind of transfer is considered fraud and is grounds for a possible discharge. Fraudulent transfers will delay your bankruptcy filing for at least a year. There is some property you are legally entitled to keep and a certified bankruptcy lawyer can help you figure out what you can and cannot keep when filing for bankruptcy.

Not sure whether you should wait to file bankruptcy? Or maybe you are ready to get it over with and get a fresh start. A certified bankruptcy lawyer can provide guidance you can trust. Contact Cossitt Law in Kalispell, Montana, for a consultation. We’ll help you figure out the right time to file bankruptcy based on your personal situation.

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