Should I file bankruptcy before or after Christmas?

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Should I file bankruptcy before or after Christmas?

If you are considering filing bankruptcy, then you should file bankruptcy before Christmas.

The reason that I say that is because any debts that you charge on your credit card for Christmas (or any other) shopping will be presumed to be non-dischargeable.  Bankruptcy law states that any charges made 0-90 days prior to filing bankruptcy is non-dischargeable.  Any charges made 90-180 days MAY OR MAY NOT be dischargeable depending on whether or not they are necessities.

Debts that are non-dischargeable must be re-affirmed (continually making monthly payments on it) or redeemed (one time lump sum payment for the fair market value of the property/debt).  Since the debts are non-dischargeable, you will still be responsible for ensuring that they are paid off.

So anything that you purchase in the 3 months leading up to Christmas (or 3 months prior to filing your bankruptcy) will not be dischargeable.

As far as debts that MAY OR MAY NOT be dischargeable, it will depend on whether they were necessities (i.e., gas, food, etc.).  If they are not necessities, then they will not be dischargeable.  If they are necessities than they will be dischargeable.

So why don’t you go ahead and get your bankruptcy started now?  that way you can have a fresh start going into the new year!

For more information regarding California Chapter 7 bankruptcies, contact our Los Angeles California Bankruptcy Attorney Chirnese Liverpool at (818) 714-2200.

The Law offices of Chirnese L. Liverpool offer affordable flat rate chapter 7 bankruptcies to all residents of California and Nevada.  Our attorney will review your personal information and determine whether filing chapter 7 bankruptcy is right for you.


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