Filing for Bankruptcy in Greensboro After the Holidays: A Local Guide

Most people don’t want to file for bankruptcy right before or during the holidays. It can be hard to enjoy the season when you know a bankruptcy case is coming. You might worry about losing access to credit or not having enough money to celebrate the way you usually do.

You may need to spend money to visit family, like paying for meals, hotels, and flights. Parents also want to make sure their kids have presents to open and don’t want them to worry about the family’s money problems.

Enjoying the holidays with your family matters, but you could end up with even more debt afterward, some of which you might not be able to wipe out in bankruptcy. It’s a good idea to talk with an experienced Texas bankruptcy lawyer about the best time to file.

Luxury Items Might Not Be Discharged 

Bankruptcy courts look at recent luxury purchases differently to regular debt. This includes most travel expenses and expensive gifts. If you plan on filing for bankruptcy in the near future, it’s unwise to purchase luxury items. Consider celebrating at home this year.

If you decide to buy luxury items or services during the holidays, your creditor might ask the court to keep those charges out of your bankruptcy. That means even after you file, you could still have to pay back the cost of any holiday luxury purchases you made on credit.

The Means Test and Your Holiday Bonus

If your employer gives large year-end bonuses, talk to your Texas bankruptcy attorney about how it can impact your income on the bankruptcy means test. If you plan to file for Chapter 7 and your income is already near the limit, a big bonus could make it look like you make more money than you actually do.

Holiday Debt Is Unlikely To Be Considered a Necessity 

Debts you take on in the 90 days before filing for bankruptcy can usually only be wiped out if you used the money for basic needs. If you were thinking about doing a lot of holiday shopping because you expect your credit card debt to be erased, remember that most holiday purchases are not considered necessities. Credit card charges for basics, like food, needed clothing such as winter coats for your kids, and utility bills, will likely be discharged. But charges for things like jewelry, perfume, or fun holiday activities may not be wiped out.

Automatic Stay Benefit

One big benefit of filing for bankruptcy during the holidays is the automatic stay. This rule stops creditors from trying to collect money from you, including wage garnishments, foreclosure actions, or constant calls and letters. Filing for bankruptcy before or during the holidays can give you quick relief. It lets you spend time with your loved ones without worrying about creditors bothering you.

Emotional Struggles of Filing During the Holidays

The holidays are a time for making memories, giving gifts, and enjoying family traditions. Filing for bankruptcy while all this is going on can feel emotionally draining and may bring up feelings of stress, shame, or guilt.

Break the Stigma

It is worth mentioning that filing for bankruptcy does not mean you failed. Bankruptcy is a legal means of helping you get back on your feet. A lot of people experience financial hardships due to everyday occurrences such as losing their job, medical bills, or changes in the economy. Bankruptcy is there to give you a fresh start.

Adjust Holiday Expectations

One way to deal with the emotional side of filing for bankruptcy is to focus on the simple, meaningful parts of the holidays. Cutting back on costly gifts, travel, or big parties doesn’t mean you can’t enjoy the season. Spend time with the people you care about and appreciate the peace that comes from taking steps to keep the wolf from the door.

Contact the Law Office of Stephen E. Robertson, PLLC 

Filing for bankruptcy during the holidays isn’t fun, and it certainly isn’t easy. However, taking immediate action can help you begin the new year with less stress and a clear path towards the future you envisioned for yourself. If you’re unsure about your next steps, we can help.

To discuss your options, contact the Law Office of Stephen E. Robertson, PLLC at (336) 370-6760 or reach out online and get the reliable guidance you need.