Thinking of filing for bankruptcy around the Christmas holidays? Keep the following information in mind before you do:
- Non-Dischargeable Debt
According to bankruptcy law, those who choose to file for bankruptcy near the holiday season are still responsible for any debt acquired as a result of purchasing gifts. This means that if you purchase any gifts within 90 days before Christmas, these debts will not go away after filing for bankruptcy.
- Cash Advances
Any cash advances amounting to $925 or more during the 70 days prior to the filing are also considered non-dischargeable, and will not go away as a result of your bankruptcy.
- Holiday Bonuses
Holiday Bonuses are considered regular income in the eyes of the bankruptcy court. If you receive a holiday bonus, this will play a role in what type of bankruptcy you will be qualified to apply for.
Before making any decision regarding bankruptcy, it’s always smart to talk to a bankruptcy attorney. A chat with a bankruptcy attorney may clear up any concerns, and help you decide which option is best for you. If you are thinking about filing for bankruptcy, call Sam Henry today for a free initial consultation.