How to Avoid Pre-Bankruptcy Holiday Mistakes

holiday shoppingSpending low, especially during the holidays, is a struggle that most people try to defeat, but they fail. For an individual that has had a bad financial year, the holiday deals on various items can be hard to resist. Even with an already struggling bank account and credit record, most people will overuse their credit card with the knowledge that, that might be the last time in a long time they get to use a credit card in their name. While the urge to spend persists, you should be careful about your expenditure to avoid running into more debt. Suppose your financial prowess is struggling during the holidays; it is important to consult with professionals to avoid making pre-bankruptcy holiday mistakes. For any assistance on bankruptcy issues, our Brooklyn bankruptcy attorneys from Ursulova Law Offices are always ready to help.   

Can filing for bankruptcy discharge holiday expenses? 

The notion that most people have while purchasing various items on credit before they finally decide to file for bankruptcy is that such debts will be discharged once they decide to file for bankruptcy. The holiday season is renowned as the season where persons almost filing for bankruptcy choose to exploit their credit cards. Such acts are committed with the aforesaid notion that filing for bankruptcy after the holidays will help discharge the debts. On the contrary, there is a high likelihood that your bankruptcy situation will not go unchallenged by the creditors. Therefore before you resolve to file for bankruptcy, it is crucial to reach out to our bankruptcy attorney Brooklyn NY for insights on matters likely to arise during bankruptcy proceedings and how to best counter an objection raised by a creditor.   

What do creditors look at once an individual files for bankruptcy? 

Once someone files for bankruptcy, especially after a holiday, their debts are not automatically discharged. Your transaction history will be looked at by creditors, so it is important to be careful. If you intend to file for bankruptcy after the holidays, it is crucial to consult a bankruptcy lawyer Brooklyn NY for guidance on the financial behaviors that will not hinder your intended bankruptcy process.   

What kind of expenses can creditors challenge? 

bankruptcyThe legal framework regulating bankruptcy, e.g., the 11 U.S.C. § 523 – U.S. Code – Unannotated Title 11. Bankruptcy § 523. Exceptions to discharge outline debts that can’t be discharged. Therefore, before deciding to make those holiday purchases, book a consultation with a competent bankruptcy lawyer in Brooklyn to learn more about dischargeable and nondischargeable debts.  

If an individual debtor owes a single creditor more than $675 on luxury goods and services spent within 90 days before they are adjudged bankrupt, such debt is nondischargeable. The creditor in these circumstances can still claim the owed amount from you. Also, cash advances that amount to more than $950 from a consumer credit extension obtained within 70 days before an individual is adjudged bankrupt are nondischargeable. Therefore once you file for bankruptcy, your creditors will scrutinize your transaction history. Suppose the holiday season pushed you into making impromptu luxury purchases, you might finally end up in more debt than you thought. Paying nondischargeable debts is mandatory and the same can be stressful especially where you are already adjudged bankrupt. Consulting with our Brooklyn personal bankruptcy attorney can give you a chance to become aware of spending habits that can render you in more debt during the pre-bankruptcy stage.   

How a Brooklyn bankruptcy attorney can help 

Even though you intend to file for bankruptcy after the holidays, you can still take cash advances or even make purchases using your credit card and still not end up in debt. Basic necessities that are purchased on credit or even cash advances are taken to facilitate the purchase of such necessities are dischargeable. Before you commence making your holiday purchases, ensure you consult our Brooklyn bankruptcy attorney from Ursulova Law Offices for guidance on the financial mistakes to avoid during the holiday.  

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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