Ask our Attorneys: Should I file for bankruptcy after the holidays?

Bankruptcy Posted on Dec 20, 2023

Bankruptcy and the holidays

The holiday season can bring about a tremendous amount of financial stress. From gift-giving pressure to travel expenses, there is a lot of pressure to be generous and spend above your means.

If you are feeling overwhelmed with debt and concerned about finances, know that you are not alone. In a recent survey, more than 70% of Americans said they feel stressed about their expected spending this holiday season.

However, if your finances are pushing you to consider bankruptcy, you may be wondering if you should file for bankruptcy before or after the holidays. In fact, our attorneys get asked this question every year. In this blog, our attorneys provide insight into the decision-making process.

Considerations for filing for bankruptcy

Before making any decisions about bankruptcy, take a comprehensive look at your financial situation. Evaluate your outstanding debts, income, and expenses to determine the severity of your financial challenges. You can also view our blog on eligibility requirements for bankruptcy in Florida.

However, it’s important to understand that each case is different. The best way to know whether you qualify for bankruptcy, and if bankruptcy is a good option for you, is to call our experienced bankruptcy attorneys for a free consultation. Call us today at 866-930-6435.

Should you file for bankruptcy after the holidays?

Many people believe that filing for bankruptcy after the holidays is the better option. However, that is not always the case. Here are some reasons why:

  • Under bankruptcy law, any debt you incur three months before or three months after filing for bankruptcy cannot be discharged. The only exception is for debts considered necessities.
  • When you file for bankruptcy, certain debts are discharged, meaning they are eliminated. However, you cannot discharge debt for luxury goods, which is often what people purchase for gifts during the holidays. Therefore, you won’t be able to eliminate your gift-giving expenses.
  • Bankruptcy is not an overnight process. It can take months to receive a bankruptcy discharge, so filing after Christmas will not actually mean you will be debt-free by January.
  • If you choose to spend frivolously or above your means during the holiday season and then file for bankruptcy after the holidays, you may be accused of fraud. This could cause your bankruptcy case to be rejected.

When should you file for bankruptcy?

You should file for bankruptcy once you have exhausted all your other options. A good way to determine if it is time for bankruptcy is to call our bankruptcy attorneys for a free consultation. We can review your situation and advise you on when and if you should file for bankruptcy.

However, if you are considering filing for bankruptcy after the holidays, here are a few tips to keep in mind:

  • Don’t overspend – Be very tight with your spending. Don’t take out loans or cash advances, and focus on spending time with loved ones, rather than gift giving.
  • Prioritize essential expenses – Create a realistic budget that prioritizes living expenses over gift purchases. It’s important to show the bankruptcy court that you tried to manage your money properly (even though you are in debt) and did not spend frivolously.
  • Communicate with your loved ones – It may be hard to cut spending during the holidays, but have an open and honest conversation with your loved ones. Discuss your limitations to avoid misunderstandings. Remember, the true essence of the holidays is spending quality time with loved ones—not gift giving.

Are you considering filing for bankruptcy in Fort Pierce, Port St. Lucie or Vero Beach?

Call 866-930-6435 for a free consultation with our bankruptcy attorneys

Filing for bankruptcy is not an easy decision. However, bankruptcy affords tremendous benefits for individuals or small businesses that are overwhelmed with debt.

If you are considering filing for bankruptcy in Fort Pierce, Port St. Lucie or Vero Beach, you can speak with our bankruptcy attorneys at no-charge with a free consultation. For over 20 years, our bankruptcy attorneys have helped thousands of individuals and small businesses throughout Florida.

Why choose Hoskins, Turco, Lloyd & Lloyd?

  • Expertise: Our team specializes in bankruptcy law and has a proven track record of successful cases.
  • Personalized approach: We understand that each situation is unique, and we craft strategies that fit your specific needs.
  • Compassionate support: Facing financial challenges is stressful, and we provide the compassionate support you deserve.

Take the first step to financial freedom. Speak with one of our bankruptcy attorneys today. Call 866-930-6435 now.

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