When people become resigned to the reality that they will have to file bankruptcy on Long Island, they often assume it’s best to file immediately.

But that assumption oftentimes leads to a misstep – one that can cost you even more in the end. Depending on your circumstances, it may be wise to hold off on your decision to file for bankruptcy on Long Island. A reputable Long Island bankruptcy attorney can help you assess your unique circumstances, and determine whether filing immediately is truly in your best interest.

What are some circumstances where you should probably NOT file for bankruptcy on Long Island immediately?

• You Want to Stop Collections:  If the sole reason you want to file for bankruptcy on Long Island is because you want to stop the incessant stream of collection calls, you can do so under the Fair Debt Collection Practices Act. You need merely send a letter requesting creditors contact you only in writing and cease collection calls at your home or work. An experienced Long Island bankruptcy attorney can help you write (and send) the letter if you feel you need help doing so.
   
• Your Past Income Was High, But Has Since Dipped:  In order to file under Chapter 7 bankruptcy (liquidation bankruptcy), your Long Island bankruptcy attorney will tell you that you need to be able to pass a “means test.” If your past year’s income was higher than stipulated for your state, you are automatically precluded from a Chapter 7 filing. Instead, you will have to file under Chapter 13 (Restructuring) bankruptcy. If your income has dipped within the past six months, however, it may behoove you to hold off and not file for bankruptcy on Long Island now. By waiting six more months, your re-calculated past year’s income will be lower (which may then qualify you to file under Chapter 7.) A reputable Long Island bankruptcy attorney can help determine what timing may be right for you.

–