It’s the New Year. Time for a Fresh Start
Many of us start the new year with the resolution to leave all of the past’s baggage behind. Abandoning toxic situations and breaking bad habits will take self-control. However, self-control will probably not be enough to deal with looming debts if you are already considering filing for bankruptcy. Chances are that your current financial situation is already too dire to fix. Perhaps filing for bankruptcy protection would provide you with the debt relief and “Fresh Start” that you seek.
There are many reasons that you may want to consider filing bankruptcy at the beginning of the year versus later on in the year. Filing bankruptcy earlier in the year has its benefits. Here are a few reasons to consider declaring bankruptcy sooner this year than later.
Tax Returns in Bankruptcy
If you expect to receive a tax refund, you will want to consider this into when you choose to file bankruptcy. The amount of your tax refund that the trustee may elect to keep depends on what month you file. For example, if you file in November, the trustee can take 11/12 of your refund. If you file in January, the bankruptcy trustee could only be 1/12. Additionally, another tax-related reason to file earlier in the year is reducing the stress around tax filing season. If you are prompt now with submitting documents, you may only be waiting for your discharge during tax season.
The Sooner You File, the Quicker You’re Financially Free
While you should be able to rent an apartment and lease a car after filing for bankruptcy, it will be two years before you qualify for a home loan. The sooner you file, the sooner you can be eligible for a home loan. In other words, the quicker you file for bankruptcy, the sooner you will be on the road to a “Fresh Start”.
Get Creditors Off of Your Back
Once you retain a bankruptcy attorney and inform any creditor that calls you, they may only contact your attorney about your debts. If your resolution this year is to spend less time on your phone, stopping creditors’ harassing calls is a good way to start.