Well, here we are ten days before Christmas, and I'll bet I can guess what many New Jerseyans are thinking: one more Christmas, and then we'll start off the new year right by calling a bankruptcy lawyer in January. One last hurrah before we crash our credit scores.
If you are thinking that, I can say unequivocally and without hesitation: stop!! A year ago today, I posted an article on why it is a bad idea to plan an "after Christmas Bankruptcy," and since it 'tis the season, I thought I would send out a reminder: Don't do it! Here's why.
- You are actually putting off an important step that needs to be taken in your life ASAP, which is forcing yourself to live within your means and on a budget. The filing of a bankruptcy puts the kaibosh on the credit cards, and using debit cards limits your spending to your bank balance. This is something you need to do anyway, so why not start now?
- Big purchases for Christmas gifts could raise a big red flag with the credit card bank if you file a month later. They could then accuse you of purposely running up debt you knew you were going to wipe out in a bankruptcy, which is considered fraud, and could result in the debt not being wiped out after all!
- Putting off filing is never a good idea, no matter what the time of year because the rules of the bankruptcy game have a tendency to change, and not always in your favor. A rule change, could in fact, make it harder for you to file bankruptcy. This happened this past November 1, when the median incomes in New Jersey dropped, thus forcing more people to jump through more hoops to qualify for a chapter 7 bankruptcy.
I know filing bankruptcy is going to throw a big wet blanket on your holiday plans and doesn't exactly put you in the holiday mood, but it is something that should be done sooner, rather than later.
I Can Help!
If you live in southern New Jersey and are considering filing bankruptcy, please feel free to call me at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.
If you are just looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.