The holidays may be the season of giving, but it’s difficult to celebrate in full force if you’re struggling with debt.

If you’re already considering bankruptcy, I commend you for doing so. With 2020 on the horizon, now is the perfect time to resolve your debt and start building a future with the financial freedom you deserve. You may feel guilty for not being able to give your children the Christmas you’d like to. While it’s tempting to rack up additional debt to treat our children to the perfect Christmas, with plenty of presents underneath the tree, you will be giving your family so much more in the long run by filing for bankruptcy.

You might be wondering whether it’s best to file for bankruptcy before or after the holidays. The short answer is: it depends. Bankruptcy laws are complex, and timing does matter. I’ll give an overview of some of the factors to weigh during your decision-making process, but ultimately, I advise you to speak with an experienced bankruptcy lawyer Memphis TN trusts, so you can better understand your options.

Bankruptcy and Timing Rules

Bankruptcy law involves different timing rules. Some of them give you a leg up if you file on the earlier side. With other rules, the complete opposite is true. The only way to know for sure how these timing laws affect your case is to speak with a trusted bankruptcy lawyer Memphis TN has turned to for more than 30 years.

Think Twice About Your Holiday Shopping

Even if you’ve decided to wait to file until the New Year, that doesn’t mean you should shop to your heart’s content during the holidays, assuming it will be easily eliminated through your bankruptcy.

There have been instances in which folks who know they’re going to file for bankruptcy at some point in the future intentionally accumulate more debt during the holidays. This approach is not in your best interest. Under our country’s current bankruptcy laws, any debt you incur in the 90-day period before filing may become nondischargeable debt. That means, it will not be forgiven unless it’s determined to be a necessity.

Generally speaking, it’s ideal to file for bankruptcy at least 90 days after your last charge. However, a bankruptcy lawyer Memphis TN turns to can provide more information. I will say that if you already know you’re considering bankruptcy, it’s in your best interest to avoid pulling out your credit card this season.

What to Know About Holiday Bonuses

As part of the bankruptcy filing process, the Court will look at your income in the six months before your filing date. If you know you’re going to receive a sizeable bonus from your employer, this may limit your available bankruptcy options.

Be Cautious of Cash Gifts

Any gifts you receive over the holidays must be disclosed to the courts when you’re filing. That includes cash gifts and any possessions you’ve inherited. Ask your attorney whether or not he advises you to file before you receive any gifts.

Consult an Experienced Bankruptcy Lawyer Memphis TN Trusts

You don’t want to stay under a pile of debt in 2020. Whether or not you decide to file for bankruptcy before or after the holidays, you have options. Speak with an experienced bankruptcy lawyer Memphis TN trusts to determine which choice is right for you. Give us a call at (901) 327-2100 today.