The holiday season is right around the corner, but it’s hard to be merry when your finances are in terrible shape. If you’ve been struggling with money problems for a while, you may already be contemplating bankruptcy.
Should you file now, however, or wait until the holidays are over?
Frankly, every situation is a little different. What’s right for someone else may not be right for you. That’s why it’s always best to make your decisions in conjunction with your legal counsel’s advice.
In the meantime, here are a few things that you need to consider:
- You need to be conscious of your purchases right now. Cash advances with the last 70 days before you file and charges within the last 90 days are all subject to examination. If you bought any “luxuries,” including holiday gifts, those debts might not be discharged.
- Year-end bonuses could affect the means test. If you want to file Chapter 7, you have to show the court that your disposable monthly income is below the state’s median. That can be more difficult to do when you’ve just received a big bonus.
- You will still be subject to legal action from creditors. Until you file your bankruptcy petition, you won’t be able to stop any lawsuits regarding unpaid bills. That means you could be subjected to increasing phone calls from debt collectors, wage garnishments and more.
Waiting until after the holiday season to file for bankruptcy can add a lot of unnecessary stress to your world. If you’re hesitant to file right now, it may be wise to talk the issue over with an attorney.
