Should You File for Bankruptcy Before the Holidays?

Salt Lake City bankruptcy lawyer

If you are struggling under a mountain of debt, now may be the best time to file for bankruptcy.

With the holidays fast approaching, you likely feel stressed about your financial situation. But, you may also feel that moving forward with bankruptcy at this time would put a damper on the festivities.

The truth is, starting the process now – rather than waiting until the holiday season has passed – may be to your advantage. Here are three reasons to consider filing for bankruptcy now.

Stop Bill Collectors

When you are hosting a holiday party or entertaining family and friends, the last thing you want is bill collectors making your phone ring off the hook. But that could easily happen if you put off filing for bankruptcy.  In addition, the continual reminders of your financial problems could leave you both embarrassed and depressed.

Begin the bankruptcy process before the holidays arrive, and bill collector phone calls will stop. As soon as you file the petition, the Automatic Stay kicks in, which prevents creditors from taking any collection actions – no more phone calls, no more harrassment.

Stop Accruing New Debts

You may think that getting your holiday shopping done before you file for bankruptcy would be a smart plan, but that is not in your best interest. Large credit card purchases and cash advances may be excluded from bankruptcy discharge – and they can even lead to accusations of fraud.

You can expect your creditors to scrutinize your pre-bankruptcy spending, and using your credit cards for holiday expenses and gifts could prolong your case or prevent you from filing. To avoid issues with your bankruptcy filing, you would be better off skipping the gift-buying binge this year.

One advantage of filing, if that you can stop throwing money at collectors and past-due payments.  This could free up some cash to make your holiday just a little bit easier!

Start the New Year with a Smile

If you file for bankruptcy before the holidays, you can move forward with your life sooner. You will feel less stress once you have taken the necessary steps to obtain debt relief, and knowing that your fresh financial start is right around the corner may help you enjoy the holiday season more.

Instead of spending the first few weeks of 2020 getting organized and filing your bankruptcy petition, consider taking action now. By doing so, you can begin the new year on a positive note.

For many people, filing for bankruptcy before the holidays is the best course of action. But no single legal strategy is right for everyone, so you would be wise to speak with an experienced bankruptcy attorney before making any decisions.

If you live in northern Utah, turn to the Law Office of Davis & Jones, P.C., for expert advice. Our legal team, led by attorneys Lee J. Davis and Tony G. Jones, has decades of combined bankruptcy law experience. We have helped more than 20,000 Utah residents obtain debt relief, and we can help you regain your financial footing.

To schedule a free consultation to discuss whether you should file for bankruptcy before the holidays, contact the Law Office of Davis & Jones in Salt Lake City, Utah, today.