The holiday season is fun, but no one can deny the fact that it is also a stressful time of year. For those with financial struggles, the holiday season almost always means digging themselves deeper into debt.
So, does it mean you should file for bankruptcy before the holiday season? Or would it prevent you and your family from having fun during the holidays? If you need a fresh financial start in 2020, it might be a good idea to manage your finances and file for bankruptcy before Christmas and New Year’s Eve.
Accumulating more debt by charging up your credit cards during the holiday shopping season will do no good.
If you consider filing before the holidays, doing so would require you to consult a Council Bluffs Chapter 7 Bankruptcy attorney. After all, filing for bankruptcy is not a decision anyone should take lightly.
4 Reasons to File for Bankruptcy Before the Holidays
There are four reasons to file for Chapter 7 bankruptcy before Christmas and New Year’s Eve:
- Stop debt collection calls and garnishments
- Avoid accumulating more debt
- Start 2020 with a clean slate
- Be smart about your budget during the holidays
Stop Collection Calls and Harassment
Stopping debt collector harassment is a top priority for many of those who file for bankruptcy in Iowa. Those collection calls are quite frustrating. In fact, dealing with those constant calls when you are trying to enjoy and prepare for the holidays can ruin the holiday spirit for your entire family.
Luckily, you do not have to worry about those embarrassing and stressful debt collection calls once you file for bankruptcy because your creditors will receive a notice that all attempts to collect debts must stop.
Avoid Racking Up More Debt
Digging yourself into a deeper debt hole is the last thing you need this holiday season, and given that statistics show that the average American will spend $920 per person on holiday gifts in 2019, it is not surprising how people manage to accumulate even more debt during the holiday season.
If you file for bankruptcy before the holidays, you will not be tempted to use credit cards to buy all kinds of holiday gifts for your distant relatives whom you have not seen in years.
In fact, those who file for bankruptcy after the holidays – with tons of large purchases and expensive gifts on their credit cards – are more likely to be accused of doing so for fraudulent reasons. Any luxury products purchased on credit within 90 days of filing can cause unnecessary trouble for anyone filing for bankruptcy in Council Bluffs or elsewhere in Iowa.
A New Year, a New Beginning
Although bankruptcy filings are at a 10-year low, mainly because many people believe that filing is overly expensive, filing for bankruptcy before the holidays allows you to start the new year without financial debt floating over your head.
Filing for bankruptcy can give you the much-needed clean slate and a resolution worth sticking to.
Be Smart About Budgeting
Smart budgeting and holiday spending are practically antonym3ous because most people are not very good at creating financial plans during the holiday season. Filing for bankruptcy is an acceptable excuse to become smarter about spending money on decorations, candy, and other unnecessary fancy things when you have financial problems.
Speak with a Council Bluffs Chapter 7 Bankruptcy attorney to find out whether you should file before the holidays. Our lawyers at Telpner Peterson Law Firm, LLP, will be glad to answer your questions. Call at 712-309-3738 to discuss your situation.