Filing for Bankruptcy After the New Year

Filing for Bankruptcy After the New Year

January 10, 2020

If you’ve been struggling with debt, no time makes that clearer than the holidays. Many people find themselves looking at their credit card bills after January 1 and wonder how they racked up so much debt. There’s no time like the present to start turning things around—in fact, the sooner, the better, so that you can avoid foreclosure, auto repossession, wage garnishment and other consequences that come with unpaid debt.

Here’s why it’s a great idea to file for new year bankruptcy in Montgomery County, TX now, before your debt snowballs any further:

  • Purge your holiday debt: Did you find that December was a very expensive month? Most Americans do, spending an average of $300 more throughout the month, most of it on a credit card. Many people find that December comes with a lot of unexpected expenses, which means it’s not a good time to file. You’re best served waiting until after the first of the year.
  • Strategic income tax choices: Legally, you’re not required to pay off your income tax debt until the first day of the next year, which is why bankruptcy attorneys often suggest that you wait until after January 1 to file for bankruptcy.
  • Attack your credit card debt: Credit card companies are wise to customers who suddenly spend a lot of money, then file for bankruptcy right after—which means that if you racked up the bills with no intention or means of paying them, your bankruptcy case may not discharge all or part of your credit card debt. Many bankruptcy attorneys will suggest you stop using and stop paying your credit card before you file, which is why it’s advisable to get through the holidays first.

A word of caution

It’s important that you understand that bankruptcy is not a guaranteed discharge of your debts. Courts will look at the things you purchased, and when and whether you had a prayer of paying that debt—then they’ll decide if you spent that money in good faith or not. While some pre-filing purchases are legitimate (food, shelter and clothing, for example), the Nintendo Switch is not.

The best thing you can do is contact a bankruptcy attorney to discuss the specific facts of your case. An attorney will be able to give you an idea of your options, discuss case strategy and help outline a spending plan so that your bankruptcy filing has the best chance of succeeding. Make getting rid of debt your New Year’s resolution and call an attorney today.

Get help filing for bankruptcy in Montgomery County, TX

James R. Jones, Attorney at Law is a skilled bankruptcy attorney, having litigated for individuals and businesses since 1993. Our firm specializes in Chapter 7 bankruptcy cases, and is licensed to appear in state court as well as United States District and bankruptcy courts in the Southern District of Texas and the 5th Circuit United States Court of Appeal. If you’re overwhelmed by debt, turn to an attorney you can trust—call us today for a free 30-minute consultation.

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