If you are asking yourself whether you should file bankruptcy before or after Christmas then you have come to the right place! Usually, the holidays are supposed to be full of joy and relaxation. However, Christmas season tends to be a time where people go more into debt or begin accumulating debt. Many times people wonder whether or not they should file bankruptcy before Christmas or after and their are different reasons why one might wait to file bankruptcy until after, or may be better off filing sooner. Let’s look at some of these things below:
The first thing in deciding whether to file bankruptcy before or after Christmas depends on what you are charging on your credit cards. It is important to understand that anything within the three months of filing bankruptcy is not dischargeable. This means that it will be your responsibility to make sure that you pay off what you have bought. It is important to note that an exception to this would be signing a reaffirmation agreement. A reaffirmation agreement allows you to reaffirm the debt even though you are filing bankruptcy. We normally do not suggest our clients reaffirm this debt. However, it is important to speak with an experienced bankruptcy attorney so they can help you decide what your best option is.
Another factor to consider whether you should file for bankruptcy before or after Christmas is to look at your income. In order to determine which chapter of bankruptcy you qualify for, the court looks at your income, averages out the last 6 months and compares it with the standard monthly income for your state. One thing to look out for at the end of the year is a bonus. Getting a bonus can put you too far over and instead of filing a chapter 7 you may have to file a chapter 13. Most people want to file a Chapter 7 Bankruptcy because their debt is wiped out unlike in a chapter 13 where they would have to make payments over a 5 year plan.
Another thing in determining whether you should file for bankruptcy before or after Christmas is to look at your gifts. In New York, anything over $600 that was given as a gift to someone can become part of the bankruptcy estate. This, a bankruptcy trustee can sue the person you gifted the money to recover it and pay your creditors.
It is important to speak with an experienced bankruptcy attorney that can assess your situation and help you determine if bankruptcy is the right option for you. This article contains ideas to think about. Although I wouldn’t be able to suggest whether filing before or after would be a good option for you without getting more detail. At Bonomo and Bonomo Attorneys At law our bankruptcy lawyers will assess your situation and determine if bankruptcy is right for you. Check out our website or give us a call today.