A lot of people face financial problems and even think about bankruptcy. Bankruptcy is a good solution to get respite from all debts and start your finances fresh as a clean slate. As the holiday season has started and shopping is on the cards, many are confused about the right time to file bankruptcy and what type of bankruptcy one should file.
Reasons Why You Need to Consider Filing prior to Holidays
- Avoid Collection Calls – A bill collector’s call while hosting your holiday guests is definitely not something you would look forward to. Besides, constant calls are a major downer, which will not allow you to enjoy your holidays. However, you need not worry about them once bankruptcy is filed.
- Avoid Accumulating More Debt – If you do not follow the right path, you might probably rack up more debt. You will not be enticed to use the credit cards to purchase holiday gifts, once you announce bankruptcy.
- Begin the Year out Right – It would obviously be a good start, if you don’t have the huge financial cloud hovering above your head. So, filing for bankruptcy before the holidays will help you set fresh resolution relevant to your finances for the coming year.
Role of Bankruptcy Lawyers
A bankruptcy lawyer can tell you exactly the type of bankruptcy you need to file for and the right time as well. bankruptcy lawyer saa Diego are experienced and will provide you with the best legal advice in this matter. They have handled a lot of cases and their expertise will help you get free of all your debts for sure.
They will educate you regarding the benefits of bankruptcy, how to file one, the kind of bankruptcy you should choose, best time to file and also clear the myths associated with it. They can also share stories of successful bankruptcy cases and examples of those who have attained financial freedom from debts.
Bankruptcy and Income Tax
There are two kinds under Chapter 7. ‘No asset’ is the first type, which states that what is possessed by an individual is exempt or it is not worth it to sell them to pay off the debts. If bankruptcy is declared in such cases after 1st of January, the IRS is not compensated. However, this does not mean that you can escape the debt. Arrangements need to be made to pay the pending income tax.
Chapter 13 has three main benefits. You get protection from IRS during the repayment process. The repayment is flexible and there are no penalties or interest added. In these cases, filing after the holiday season would be the best option.
If you want to file bankruptcy and free yourself from all debts that are causing concerns, you need to consider a few things. The best option is to consult a lawyer to ease your mind and start the New Year fresh with zero stress. Get some legal advice to learn about the best option for you.