As a bankruptcy lawyer Memphis TN has turned to for more than 30 years, I often tell my clients that there’s no wrong time to file for bankruptcy. I mean it. From years of watching families rebuild, I can honestly say that it’s never too early or too late to tackle your debt and forge a new path. That said, there’s a reason we set New Year’s resolutions this time of year. Each January is an opportunity to start over. And there’s no better way to start over than by giving yourself the gift of clearing your debt.

Give yourself a post-holiday shopping financial “cleanse.”

It can feel impossible to embrace the symbolic beginning of a new year when you are feeling the weight of the past. This time of year, many of us find ourselves reviewing a pile of bills that we can’t fathom paying.

The holidays—and holiday shopping—compound that feeling even further. If you’re feeling stressed about the cost of the season’s festivities, you should know that you’re not alone. Studies show that Americans’ consumer spending rises every November. By December, we spend an average of nearly $10 more each day than we do in any other month of the year. We’re often putting those extra expenses on our credit cards, making a new year the perfect time to reset and file for bankruptcy.

You’ve got options: Chapter 7 and Chapter 13.

There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Each has its own qualifications and advantages, so before you choose one, it’s important to discuss your situation with an experienced bankruptcy lawyer Memphis TN trusts.

A Chapter 7 bankruptcy allows you to get rid of credit card debt and medical debt without paying it back. Additionally, you can usually keep property such as your home and your car. It has the power to stop creditor harassment, wage garnishment, and debt collection in their tracks.

By contrast, a Chapter 13 bankruptcy reorganizes your debts into an affordable 3–5 year repayment plan. You’ll pay back a small portion of your debts while increasing your weekly cash flow. If you’re behind on home or car payments, you can file a Chapter 13 and keep your property.

There are advantages to both approaches, and a bankruptcy lawyer Memphis TN trusts will help you identify your best path forward. If a Chapter 13 is your best option, there is an additional advantage to filing at the beginning of a new year. If you owe federal or state taxes for 2020, you can include them in a Chapter 13 by waiting until January 1st to file.

New year, better finances.

Bankruptcy was specifically designed so that you can pay back or eliminate unmanageable debt. Our lawyers offer free consultations, meaning it doesn’t cost a thing to discuss your next steps.

At Darrell Castle & Associates, PLLC, we believe that moving forward is what New Year’s celebrations are supposed to be about.

If you’re committed to moving forward this year, invest in your future and consider bankruptcy. Give us a call at (901) 327-2100 to start the conversation today.