How to Plan for Bankruptcy Around the Holidays
During the holiday season, individuals and families in South Florida often struggle financially, and they try to think about ways to manage money during a time of the year that often requires a significant amount of spending. Each year, individuals and families alike try to set aside money to cover holiday season expenses, but when you are struggling with debt, it can be impossible to save anything. As every near holiday season approaches, consumers who are facing substantial debt often consider the possibility of bankruptcy. If you are in this situation, it is important to understand some key elements of the US Bankruptcy Code that could ultimately affect your bankruptcy case if you need to spend during the holidays. It is also critical to consider the filing date, and whether to file for bankruptcy before, during, or after the holiday season.
Gifts and Year-End Bonuses
While you are considering the timing of your bankruptcy filing, it is important to consider any assets you are likely to receive as gifts, or any year-end bonuses that you may receive from an employer. Additional assets or bonuses could affect your ability to file for a liquidation bankruptcy depending on your financial situation, but they could also become part of the bankruptcy estate if you do plan to file for Chapter 7 bankruptcy on the sooner side.
It is important to discuss your existing assets, as well as other anticipated assets, with a lawyer who can help you to plan the timing of your bankruptcy filing based on your financial circumstances and the type of bankruptcy you plan to file.
Additional Debts Accrued During the Holidays May Not Be Dischargeable
When it comes to the timing of your bankruptcy filing, it is also crucial to consider new debts that you may accrue during the holidays. If you are planning to charge holiday-related expenses on any credit card on which you are already carrying a significant balance, or taking on additional debt on any other line of credit, it is essential to understand that these additional debts may not be dischargeable in your bankruptcy case if you are planning to file soon.
Generally speaking, US bankruptcy law does not allow any “luxury goods” or “luxury services” to be discharged if they were accrued within the 90-day period prior to your bankruptcy filing. Typically “luxury” goods or services mean any charges of $800 or more with a creditor. You should also know that you cannot avoid this aspect of the law by taking out cash on your credit card. Typically, cash advances made within 70 days of the date of filing are subject to the same scrutiny.
Contact Our West Palm Beach Bankruptcy Lawyers Today
The holiday season presents financial difficulties for many people in South Florida, and trying to navigate the timetable for a bankruptcy filing as you are grappling with the costs and debts of the holiday season can be complicated. You should discuss your circumstances with an experienced West Palm Beach bankruptcy attorney at Kelley, Kaplan & Eller as soon as possible with the holiday season quickly approaching.
Sources:
uscode.house.gov/browse/prelim@title11&edition=prelim
