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.
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.
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”.
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.