Anyone filing for bankruptcy has questions about the process, but if you're considering filing around the holidays, you likely have some additional concerns that need addressing. Is it better to file as soon as possible, or should you wait until after the holidays? Is Chapter 7 bankruptcy or Chapter 13 better for your situation? Is it possible to still enjoy the festivities and merriment of the season when dealing with a bankruptcy? Below are answers to these questions and more, with a rundown of important information to know about filing for bankruptcy around the holidays.

When to File

Timing is extremely important when filing for bankruptcy. Any debt that is accumulated within 90 days of filing may be deemed ineligible for discharge in a Chapter 7 case. If a debtor's plan is to charge holiday gifts on credit cards, then attempt to have that debt eliminated by filing for Chapter 7, the courts may not approve the elimination, leaving the debtor stuck with the bill. The best time to file for bankruptcy is 90 days after your last charge was made.

Chapter 7 & Chapter 13

Chapter 7 is an elimination of unsecured debt, while Chapter 13 is a debt consolidation and repayment plan. Those who qualify for Chapter 7 must fall within certain income guidelines. So, if you are expecting a major holiday bonus, it could potentially disqualify you from Chapter 7. Again, timing is essential in this example. Filing a post-holiday-bonus could leave Chapter 13 as the only option.

Enjoying the Holidays During Bankruptcy

If you decide to file for bankruptcy before the holidays, you should know that you can still enjoy the season. When buying gifts, don't be extravagant, and always pay with cash. Better yet, put the focus on experiences rather than on things. Spend time with loved ones, host a low-key holiday get-together, play board games with friends, or write heartfelt holiday letters to coworkers. A happy holiday doesn't have to cost a thing.

Navigating bankruptcy at any time of the year comes with complexities. Let the lawyers at Zellar & Zellar, Attorneys at Law, Inc. help. Since 1965, they've been representing clients in Franklin County, OH, with a number of different legal issues, including bankruptcies, personal injuries, and estate planning. Schedule a free case evaluation by calling (614) 564-0117 or visiting their website.

This article is intended to provide general information, and should not be construed as legal advice or in creating an attorney-client relationship.