Should You File for Bankruptcy Before or After the Holidays?

In the old days, financial stress during the holidays was a rite of passage. You knew you were an adult when, instead of being excited about the Christmas cookies in the kitchen and the presents under the tree, you worried about the cost of plane tickets and learned to bake your own cookies from scratch to give as gifts to coworkers because it was cheaper than giving store-bought presents. In recent years, though, the financial stress of the holidays seems to last all year; there is no respite.  That is why, this year, you have decided to file for bankruptcy.  This way, you can get some relief from the debt you will never be able to pay; by filing for bankruptcy, you will also be able to free up funds for the debts that the bankruptcy court cannot discharge.  Your next task is to decide whether to file now, when most people are booking holiday travel tickets, or to wait until January, when unhappily married couples flood the courts with their divorce petitions.  For help strategizing about the timeline for your bankruptcy filing, contact an Oakland Chapter 7 bankruptcy lawyer.

Why It Makes Senese to File Before the Holidays

Divorce Monday, the first business Monday in January, sees more divorce filings than any other day.  This is because couples want to make a clean break between tax years; last year, they were married the whole year, and this year, they have been in the process of divorce the whole time.  No such incentive exists for bankruptcy cases; the sooner you file, the sooner you can get relief from your debts.  If you are filing for Chapter 7 bankruptcy and your financial situation is so dire that you are sure that you do not own any non-exempt assets, you have nothing to lose by filing now.  By the time you get to the holidays, your new, relatively debt-free life will already be coming into view. 

If you are in danger of wage garnishment, file for bankruptcy now. The court will automatically pause wage garnishment proceedings while your case is pending.

Why it Makes Sense to Wait Until the New Year to File

It makes sense to wait until after the holidays if you have a substantial income. If you are filing for Chapter 13 bankruptcy, you do not have to worry about the court liquidating your assets unless things go so wrong with your bankruptcy case that the court converts it to Chapter 7. If you are planning on filing for Chapter 7, you should wait until after the holidays to file if you are expecting to get an end-of-year bonus. The bankruptcy court will consider the bonus part of your bankruptcy estate. It could push your assets over the threshold of exemption, which could mean that the court would take your bonus and use it toward the repayment of your debts.

Contact the Law Office of Melanie Tavare About Bankruptcy Filings

A debt relief lawyer can help you file for bankruptcy now or after the holidays. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.