The holidays can put quite a strain on every family’s budget, whether you’re poor or rich, but can the holiday season spiral out of control and lead you to filing for bankruptcy?
What’s the risk of draining your bank account with tons of food, expensive home decorations and Christmas gifts (you want your loved ones to have the best Christmas gifts!)?
It may actually be higher than you think, our Wesley Chapel bankruptcy attorneys warn.
How big of a burden Christmas spending is?
Statistics show that an average American family spends up to $1,000 during the holidays. And that could be alarming considering that more than 60 percent of Americans have less than $1,000 in savings, according to MarketWatch.
While this may not sound like a big deal, bankruptcy is usually looming over families who have a sole financial provider. In he/she gets terminated in December or January, the family may start considering to file for bankruptcy (as there would be little to no savings left after overindulgent spending during the holidays).
Even if neither of your family members gets fired during or after the holiday season, you may still struggle to have Christmas paid off. Statistically speaking, half of Americans pay off holiday spending by the end of January, our experienced bankruptcy lawyers at DHW Law, P.A. say.
However, other 23 percent of Americans carry the holiday spending burden till the end of tax season, and 13 percent will pay off holiday spending by the end of the subsequent summer.
Other 6 percent will put their Christmas debt behind them just in time for the next holiday season, and other 6 percent of Americans will still be carrying the debt past the end of the NEXT holidays.
Can the holidays lead to your bankruptcy?
In a nutshell, the holiday season may exhaust your savings if your family is struggling financially. That’s why our best bankruptcy attorneys in Wesley Chapel advise families to be prepared for any outcomes and consider all options to survive the holidays.
And one of the options for families who worry about losing all their savings during the holiday season is to file for bankruptcy BEFORE the holidays even start emptying your pockets.
In fact, our bankruptcy lawyers at DHW Law, P.A. say there are quite a few benefits of filing for bankruptcy before the holidays. And here’s why…
Benefits of filing for bankruptcy BEFORE the holidays
While many Americans believe that waiting for January to file for bankruptcy will help them get rid of debts stemming from holiday expenses, these debts may actually not be dischargeable, attorneys warn.
Your expenses within 90 days prior to filing for bankruptcy are most of the times excluded from discharges. By attempting to discharge your holiday expenses that came within those 90 days, you risk getting your bankruptcy claim rejected on suspicion of fraud.
Another benefit of filing for bankruptcy before the country enters the holiday spending frenzy is that your bankruptcy will most likely help you get total control of your finances, and will prevent overspending during the holidays.
Also, by filing for bankruptcy in advance, you may prevent creditors from bothering you with their calls and visits. Sometimes it seems as if creditors are working 24/7 – even during the holidays – so the risk of getting harassed by your bank exists even during the holiday season.
Here at DHW Law, P.A., our Wesley Chapel bankruptcy lawyers educate our clients about bankruptcy, help them prepare and file for bankruptcy, as well as provide them with a wide variety of legal tools to stop creditor harassment during the holidays.
Consult our attorneys to find out your best strategy when it comes to dealing with bankruptcy. Call at 813-962-3176 or fill out this contact form to get a free initial consultation.