Personal Bankruptcy In The New Year: What To Consider
Are you considering the possibility of personal bankruptcy in the New Year? After the New Year, many individuals start to think seriously about getting their finances under control and managing debt that they have accumulated. Yet if you are planning for bankruptcy in early 2023, it is important to keep a few considerations in mind, including issues pertaining to recent charges and bankruptcy eligibility. Our West Palm Beach bankruptcy attorneys can provide you with more information.
Debts Accumulated Too Soon Before Your Bankruptcy Filing Are Unlikely to Be Discharged
First, if you charged a number of purchases or any particularly expensive purchases during the holiday season, these debts may not be dischargeable. To be sure, under U.S. bankruptcy law, any debts that are considered to be “luxury” charges will not be dischargeable. The term “luxury” is broader than you think and essentially means most charges that are not necessary. Any charges for items and services made within 90 days of filing for bankruptcy may be considered luxury goods or services and may not be dischargeable. In addition, any cash advances taken out 70 days prior to your bankruptcy filing may not be dischargeable. Common luxury goods or services charged during the holiday season include flights and hotels to visit family, holiday gifts, and related charges.
At best, these charges will not be dischargeable in your bankruptcy case. At worst, they could lead to bankruptcy fraud allegations if you do file for bankruptcy and try to have these debts discharged. A bankruptcy lawyer can advise you on the specifics of your case.
Know Your Financial Situation and Your Bankruptcy Eligibility
Before you begin planning to file for bankruptcy, you should also be thinking carefully about your current financial situation and your bankruptcy eligibility. Are you currently employed and earning a regular income, or are you currently unemployed? The answer to that question can impact your eligibility for both Chapter 7 and Chapter 13 bankruptcy. Generally speaking, you must be employed and earning a regular income to qualify for Chapter 13 bankruptcy, which is a reorganization bankruptcy that is commonly known as a “wage earner’s plan.” If you are employed, at the same time, you could potentially qualify for Chapter 7 bankruptcy if your income and assets are low enough. A bankruptcy lawyer can assess your specific circumstances to determine your eligibility for different types of personal bankruptcy in the New Year.
Contact Our Bankruptcy Lawyers in West Palm Beach
When you are considering personal bankruptcy, or you feel as though you are ready to file for personal bankruptcy, it is essential to seek advice from an experienced bankruptcy attorney as soon as you can. While personal bankruptcy may seem straightforward in some respects, these cases are very complicated, and it is important to have an attorney on your side throughout the process. An experienced West Palm Beach bankruptcy attorney at Kelley Kaplan & Eller can begin working with you today to determine your eligibility for personal bankruptcy and to ensure that everything is in order for you to file.