Is There Any Benefit to Waiting Until the Holidays Are Over to File?
You’ve lost your job. Maybe you’ve been hurt or sick, unable to work. There doesn’t appear to be any prospect that your financial situation is going to change in the foreseeable future. But it’s the holiday season. Do you really want to file for bankruptcy at Christmas? Is there any benefit to waiting until the holidays are over to file for bankruptcy protection?
You Typically Can’t Discharge Christmas Debts in Bankruptcy
If you’re thinking that you can purchase or charge holiday presents now and discharge them in a Chapter 7 in January, think again. Under the bankruptcy laws, any debts for luxury items purchased within 90 days of your bankruptcy filing are non-dischargeable. In fact, attempting to rid yourself of those kinds of debt may be deemed bankruptcy fraud. As a general rule, the only debts incurred within 90 days that can be permanently discharged are those for “necessaries,” such as food and shelter.
Similar rules apply to any cash advances you take on a credit card, although the lookback period goes back only 70 days.
Why You Might Consider Filing for Bankruptcy at the Holidays
It may surprise you to learn that, contrary to popular belief, what most people feel when they file for bankruptcy protection is relief. The decision to file for bankruptcy takes courage and a willingness to confront your financial difficulties. It reflects a conscious decision to get a fresh start. It means you won’t have to face the seemingly endless phone calls and other communications from creditors. In many ways, it might just be the best present you can give yourself and loved ones at the holidays.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
Let us help you take the right steps and make good decisions when filing for personal bankruptcy protection. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.
