If you are considering bankruptcy after the holidays are over, here are some things to bear in mind:
- Your income for purposes of filing bankruptcy is determined from the last six months prior to filing. If you typically receive a year-end or holiday bonus it could artificially inflate your income, which may push you over the income qualification threshold for filing purposes.
- Payday loans or cash advances totaling more than $925 that were taken out within 70 to 90 days of filing the bankruptcy could be objected to by the credit card or payday loan company. This means that the debt may not be discharged in the bankruptcy.
- Using your credit cards for unnecessary items within 90 days of filing bankruptcy is not a good idea, especially if the transaction is $650 or more. The trustee can contest the debts and they may not be discharged. If you think bankruptcy may be a possibility, try not to use your credit cards at all for at least 90 days before filing.
- Do not gift large amounts of money or property to friends or family. There is a “look back” period of one year prior to filing bankruptcy to assess all property transfers. The trustee will determine whether you transferred those assets with the intent to file bankruptcy and they could be considered fraudulent transfers. If this happens your bankruptcy could be dismissed.
Play it Safe
A new year can be a fresh start. If you are unsure of whether bankruptcy would be the best option for you, contact our office today to schedule your free consultation. You will be paired with an AV Preeminent Rated attorney who will assess your situation and help you decide how you should best move forward.