The new year is right around the corner, which means if you’re struggling financially, now is the perfect time to declare bankruptcy. A bankruptcy attorney will typically tell clients the best time to file is immediately, as soon as they realize doing so will help them regain their financial footing. Most lawyers would agree the second best time to file is at the start of the year. Here are just a couple of ways discharging debt will help you start the new year off on the right foot. 

A Fresh Start

Declaring chapter 7 or chapter 13 bankruptcy in January can be as beneficial psychologically as it is financially. Letting debt hang over you for yet another year could sap all motivation to improve your situation. Making a minor dent could feel overwhelming and even pointless if interest rates are high, which may lead to accumulating more debt. On the other hand, eliminating applicable debts through bankruptcy will provide the resolve you need to make smart money moves all year.

A More Flexible Budget

Discharging debt in January will let you put more income toward household necessities every month thereafter. You will also have the flexibility to start a savings account and contribute a portion of every paycheck to it. You can then build an emergency fund to address the year’s unanticipated expenses, so you won’t sink deeper into debt to cover it. A bankruptcy attorney will help you determine which debts are dischargeable and devise a budget for the coming year. 

If you have accumulated debt and think discharging it could be the answer, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney. Located in Honolulu, this knowledgeable bankruptcy attorney has more than 25 years of experience practicing law. A former Navy JAG Attorney, he has discharged millions of dollars of debt for his clients. Call (808) 524-4529 to schedule a free case review with this bankruptcy attorney, and visit his website to see what you should bring to the appointment.