Bankruptcy is not something you probably want to think about at any time of year but around the holidays is the worst. There is already so much going on at Christmas time that most people don’t want to get into a complex legal procedure as well. So, it should come as no surprise that filing usually gets put off until after the holidays.
Many people believe that they should wait till just after or just before Christmas to file for bankruptcy because:
- They believe that if they file after Christmas that the bankruptcy will get rid of any charges they put on their credit cards while doing their shopping.
- They think that getting it out of the way before Christmas will give them a fresh start on the New Year, not realizing how long a bankruptcy procedure can take.
Waiting doesn’t really work because bankruptcy law deems any debts that you incur either three months before or three months after Christmas as non-dischargeable debt. A non-dischargeable debt is one that you are still responsible for paying off. This means that they must be either:
- Re-affirmed – You re-affirm a debt when you continue to make monthly payments on it until it is paid in full.
- Redeemed – You redeem a debt when you the full market value in one lump sum.
The only exceptions to this rule are if the debts incurred were deemed to be “necessities”. In these cases the debts would be discharged through a bankruptcy. So, it is best to file for your bankruptcy during the spring, summer or fall. That way you can enjoy your holidays and enter into the New Year with a clean slate.
If you are looking into divorce as a possibility, call one of our experienced bankruptcy attorneys to set up a free consultation. We can guide you through the process from beginning to end and make sure that all of your questions are answered.