Bankruptcy at New Years: A Fresh Start for Your Finances
As the clock strikes midnight on New Year’s Eve, some people greet the new year with heavy financial burdens. If you’ve been feeling buried under debt, filing bankruptcy in the new year might be the resolution you need to regain financial freedom.
It’s not just about eliminating debt; it’s about giving yourself the chance to build a better future. And here’s how.
Why Bankruptcy Makes a Great New Year’s Resolution
I always remind my clients: The more money you spend on credit, the more you’re paying for the past. And you’re using today’s money (and your future finances) to cover it.
Living this way can create a never-ending cycle… unless you set a goal and put a stop to it.
It’s time to start living in the present. The start of a new year is all about fresh beginnings, and bankruptcy is one of the most powerful tools for a financial reset.
If you’ve been struggling to pay off mounting credit card balances, medical bills, or other debts, bankruptcy can clear the slate and give you the opportunity to rebuild.
Filing for bankruptcy can also help you set long-term financial goals. By eliminating your unmanageable debt, you’ll have the chance to focus on saving, budgeting, and creating a more stable financial future for yourself and your family.
How Bankruptcy Can Help You Achieve Your Other New Year’s Resolutions
When debt is weighing you down, it doesn’t just affect your wallet—it takes a toll on your energy, focus, and peace of mind.
Filing bankruptcy in the new year can eliminate that financial stress. As a result, you free up the mental and emotional bandwidth you need to tackle other goals and resolutions for the new year.
Imagine being able to focus on the things that really matter. You could build healthier habits, advance your career, or spend more quality time with family without constantly worrying about how you’ll pay the next bill.
Here’s how bankruptcy can support your broader resolutions:
Improving Your Physical Health
Financial stress is a leading cause of anxiety and even physical health problems like high blood pressure. Debt also relates strongly to mental health.
Far too many people set health-related resolutions without even thinking about how debt might impact those other personal goals.
Strengthening Your Relationships
Debt-related stress often spills over into our personal lives, causing a strain in our relationships. We’ve seen time and again at our firm how debt hurts marriages and causes intense infighting.
Bankruptcy can relieve that tension. It often helps people reconnect with loved ones, without this additional burden.
Focusing on Your Career Goals
If you’ve been putting off career moves or educational opportunities because of debt, filing for bankruptcy can clear the path. With less financial pressure, you could have the freedom to pursue certifications, training, or even a job change that aligns with your long-term goals.
Building Great Financial Habits
Bankruptcy isn’t just about erasing past debts—it’s also a chance to create healthier financial habits for the future. Without the constant weight of creditors, you can focus on budgeting, saving, and building a stronger financial foundation.
To help with this goal, we offer a free report called Life After Bankruptcy. This report guides you through the process of rebuilding your finances and building a better life than you could have imagined before taking the step of filing bankruptcy in the new year.
Is There a Best Time of Year to File for Bankruptcy?
The best time to file for bankruptcy depends on your specific situation, but there are a few advantages to starting the process in the new year:
Firstly, if you’re like many people, holiday expenses might have added to your debt load. Filing early in the year can help you address this before it spirals further out of control.
Furthermore, bankruptcy courts look at your financial situation when determining your eligibility for Chapter 7 or Chapter 13 bankruptcy. Starting in January means your income records will align neatly with the new calendar year, potentially simplifying the filing process.
You should also consider that tax season is just around the corner, and your tax refund can play a role in your bankruptcy case. By planning ahead and consulting with a bankruptcy attorney, you can make the most of your refund while navigating the process.
And lastly, if your income in the previous six months is higher than average, you might benefit from waiting until the new year to file. This can help you qualify for Chapter 7 bankruptcy, depending on your situation.
Our attorneys offer a free consultation where we can discuss your timing and how it might help or hurt your goals.
Starting the Year with a Clean Slate
Filing for bankruptcy is not the end—it’s a beginning.
Many people worry about the stigma of bankruptcy, but the truth is, it’s a responsible choice for those who need relief from overwhelming debt. Instead of continuing to struggle, you’re taking control of your financial future and making a proactive decision to improve your life.
If you’re ready to leave financial stress behind and start the new year with a clean slate, we’re here to help.
As experienced, award-winning bankruptcy attorneys in Memphis, we’ll guide you through the process and help you make the best decisions for your situation.
Contact us today to schedule a free consultation. Together, we’ll make 2024 the year you reclaim your financial freedom.