Christmas Credit May Sink Your Bankruptcy Lifeboat
Many people put off hard decisions until after the holidays, whether it’s surgery, divorce or filing for bankruptcy. And with the easy availability of bank and store credit cards, the decision to fund holiday purchases by borrowing is all too tempting. After all, if you plan to file for bankruptcy after Christmas, what’s the harm?
Credit card purchases for Christmas gifts are considered non-essentials by the court. If they are charged within 90 days of filing bankruptcy will not be discharged, meaning you will still have to pay those bills in full. You may also be faced with collection lawsuits or a foreclosure that will not allow you to wait 90 days to file. Only essential services or items can be discharged in the bankruptcy. So, don’t fall into the holiday credit trap. Make that hard decision to plan for the financial safety of your family as well as for their holiday spirit. If you have any questions, call Steven Schneider, Attorney at law, (509) 838-4458.
Using Your Tax Refund to File Bankruptcy?
One problem everyone faces when considering filing for bankruptcy protection is how to pay for the attorney and filing fees. Attorney fees for a typical Chapter 7 start at $800 and up depending on where you live. A Chapter 13 bankruptcy can cost $3,000 and more. Filing fees paid to the court are aa little over $300. Most of this must be paid before filing.
Fortunately, this is the perfect time to use your tax refund to get you out of this dilemma. File your tax return as soon as you can once you receive your W2 form from your employer. E-filing and electronic deposit can speed up the process of receiving your refund. While you are waiting for your refund, plan your filing with your attorney. A partial payment may allow some of the work to start in the meantime. Once you receive your refund and pay the fees, your bankruptcy usually can be filed within a week or two. Call our office and talk to attorney, Steven Schneider, first to see if it will work for you. (509) 838-4458.