Law Offices of John M. Hyams

THE AFTER-CHRISTMAS BANKRUPTCY It’s human nature to hold off filing bankruptcy until after the holidays. Here’s what you need to know once you think again about filing. _________________________ Keep these in mind: 1. Credit used within a few months before filing bankruptcy can, but does not necessarily, cause problems.... 2. If you expect to owe 2013 income taxes and file bankruptcy after December 31, 2013, that debt can be included in your case in certain limited but important ways. 3. Money received in the second half 2013 as a bonus or gift, even if not very much, can bump up your income for the means test, possibly with big consequences. _________________________ The Quietest Time of the Year For most bankruptcy attorneys December is the quietest time of the year. Because: people understandably want to focus on family and friends, instead of on their financial troubles; the materialism of the season discourages people from taking a realistic view of their finances; many mortgage companies ease off on foreclosures, and other creditors and collection agencies back off their collections, during this season, to avoid looking like Scrooges, taking some of the pressure off debtors; people don’t have time to see an attorneyespecially about bankruptcywith everything they have to get done for the holidays; and no one has the emotional space to go talk with an attorney about messy personal finances during this already emotionally taxing time of the year. Things to Keep in Mind Starting December 26 After getting through the holidays, and with the time for New Year’s resolutions approaching, one of your likely resolutions is to defeat your debts once and for all. If you are considering bankruptcy as one possible way to meet that resolution, be aware of the following after-Christmas, turn-of-the-year issues: Some debts you rang up during the few months before filing bankruptcyto buy holiday gifts or pay for holiday expenses, for examplemight not be discharged (legally erased). That depends on some nitty-gritty details of your use of credit, as well as your intentions at the time. If you are going to owe income taxes for the 2013 tax year expect to be filing your bankruptcy case soon after the turn of the year, that 2013 tax debt presents both some challenges and opportunities. Oddly, sometimes that debt can be paid in effect without costing you anything. A holiday bonus from your employer or a cash gift from a well-meaning relative can increase your income for purposes of the means test, either making qualifying for Chapter 7 more difficult or potentially turning your 3-year Chapter 13 case into a 5-year one. These major financial disadvantages can often be avoided through smart timing. - Patrick J. Conway See more

Who should declare bankruptcy? http://www.forbes.com//small-business-bankruptcy-entrepren

U.S. News report: Should you file for bankruptcy? http://money.usnews.com//04/21/should-you-file-for-bankrup

CNBC says bankruptcy is a good thing for certain people: http://www.cnbc.com/id/101124903

File for bankruptcy while protecting your home from foreclosure. It's possible! http://bit.ly/RIaSe8

There's life after debt. What's your bankruptcy story? http://bit.ly/TfdpT6

Repaying your debts may be an appropriate option with Chapter 13. Pay back your debts from 10-100%: http://bit.ly/LT8Bfs

Debt doesnt have to ruin your life. Well give you the options you need to start over: http://bit.ly/OLG2Gu

Stop the harassing creditor phone calls. Debt is stressful enough. Work on a solution: http://bit.ly/OLG2Gu

Protect your home from foreclosure or your car from repossession with Chapter 13. Learn more: http://bit.ly/LT8Bfs

In this economy, if youre drowning in debt, you most certainly are not alone. Get help you deserve it: http://bit.ly/PQlwnt

If youre interested discussing your available options, were here: http://bit.ly/PQlwnt

Think a fresh start may be your best option? Consider Chapter 7 well tell you if that option would work best http://bit.ly/OLG2Gu