As a debt lawyer TN trusts, I often tell clients there is no wrong time to file for bankruptcy. I truly believe it is never too early or too late to get yourself on the path to financial freedom.

That being said, if you’re struggling with debt and your New Year’s resolution is to get your financial life back on track, filing for bankruptcy this January might be the right choice for you.

The New Year celebrations mean many folks are making resolutions for the year ahead. Whether it’s to lose a bit of weight, get organized, or get their finances in order, many Americans use January as an opportune time to better themselves. And getting control of your debt can be the perfect new year’s goal.

You’ve got options with bankruptcy

Many people set New Year’s resolutions but don’t follow through because they don’t know where to begin. It can be the same with bankruptcy. A lot of folks know they want to file for bankruptcy but get overwhelmed by where to start.

The first step is determining which type of bankruptcy you are going to file.

Chapter 7 bankruptcy 

A Chapter 7 allows you to get rid of medical debt and credit card debt without paying it back. You can also usually keep property such as your car and your home.

One of the most immediate benefits of a Chapter 7 bankruptcy is its power to stop creditor harassment, wage garnishment, and debt collection. Just think of starting a new year without the burden of creditors harassing you and your family.

Chapter 13 bankruptcy

A Chapter 13 bankruptcy is a debt reorganization plan. This means that your debts and past-due payments are lumped into one affordable 3-5 year repayment plan. The benefit of this is that it simplifies your financial life. You won’t have to start a new year worrying about countless monthly bills like credit cards, medical bills, and car payments. Instead, you will make one payment to a Chapter 13 Trustee who will then make payments to your creditors.

In addition, if you’re behind on home or car payments, you can file a Chapter 13 and keep your property.

There are benefits to filing for bankruptcy in the new year.

Each type of bankruptcy comes with its own advantages and qualifications. An experienced debt lawyer, like myself and my team at Darrell Castle & Associates, can help you choose the best fit for you and your unique situation.

If a Chapter 13 is your best option, there is an extra advantage to filing at the beginning of a new year. If you owe federal or state taxes for 2022, you can include them in a Chapter 13 by waiting until January 1st to file.

Speak to a debt lawyer TN trusts today for a FREE consultation

If you want to begin the new year debt free, we’re here to help you achieve that goal. Contact us online or call 901-327-2100 to schedule a free consultation. You can speak with one of our experienced lawyers about your situation, and ask any questions you may have. It doesn’t cost a thing to discuss next steps.

If debt freedom is your New Year’s resolution, give us a call. We can help turn your resolution into a reality.