QUESTION
Is it best to file Bankruptcy before or after the baby is born?
Asked on Oct 11th, 2013 on Bankruptcy - New Jersey
More details to this question:
My wife is pregnant and we are 95% certain we will be filing bankruptcy in the near future. Should we wait until after the baby is born? Is there any harm in bankruptcy courts knowing we waited for that reason?
12 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You have the right to file whenever you want to. If you have the baby, you can exempt more of your property for a head of hpusehold and a dependent exemption.
Answered on Oct 16th, 2013 at 11:41 AM
I don't think it would make any difference one way or the other as to your eligibility for bankruptcy. But, you may wind up with some medical bills that you cannot pay after the pregnancy or birth. In that case, you may want to wait until after the baby is born so you can assess whether those medical debts might be discharged.
Answered on Oct 15th, 2013 at 3:51 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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You might want to wait until after just in case you incur more debt.
Answered on Oct 14th, 2013 at 1:28 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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The decisions of whether or when to file bankruptcy should be based on a totality of the circumstances, not just one variable. That being said, if you wait until after the birth of your child, you will be able to add her/him as a dependant for the purpose of means test calculation and in calculating your budgetary expenses. That may or may not be a significant issue for you.
Answered on Oct 14th, 2013 at 11:47 AM
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Wait until after the baby is born to file bankruptcy. There may be unforeseen medical expenses and you can count your new child as another member of the household under the means test.
Answered on Oct 14th, 2013 at 11:45 AM
Deborah F. Bowinski
Will you have additional medical expenses associated with the birth? If yes, them wait. Do you know whether you qualify for a chapter 7 case income-wise? If not, them Italy be possible that a household of three will give you aired favorable outcome than a household of two. You should sit down with an attorney to find out what is best.
Answered on Oct 14th, 2013 at 10:18 AM
It may make no difference, or it may make a big difference. So, to be safe, and if you can, wait until the baby is born to file. Having an additional person will both increase your means income number, which is a good thing and it will allow you higher numbers in your expenses on Schedule J. This is a difficult question to answer without know whether you are going to file a Chapter 7 or 13, and what your income is, as there are many additional factors to be considered.
Answered on Oct 14th, 2013 at 10:04 AM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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There is no harm in waiting.
Answered on Oct 14th, 2013 at 9:08 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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That is a loaded question! I think if you are dealing with pregnancy issues and there is no urgency to file, then waiting until after the baby is born, to avoid unnecessary stress, etc. is the right thing to do.
Answered on Oct 14th, 2013 at 8:53 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Actually waiting for the child to be born will be a positive as it will increase the number in the household, which means that you have an easier time meeting the means test. Also, if you wait long enough, you can add the additional hospital bills that are not covered by the insurance to the BK.
Answered on Oct 14th, 2013 at 8:51 AM
The courts do not allow "planning" for bankruptcies by incurring debts with the purpose to subsequently discharge it. There is a two-year "look-back" period for fraudulent transfers. The bankruptcy court could deny your petition or disallow discharging a particular debt.
Answered on Oct 14th, 2013 at 8:47 AM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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It may have an effect based on changes in income and family living expenses for a family of 3 instead of a family of 2. It is your decision when you choose to file.
Answered on Oct 14th, 2013 at 7:29 AM