The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Why Filing Bankruptcy in January May Be Helpful for Your Finances

Posted By Allmand Law Firm, PLLC || 20-Jan-2014

images (10)

How Filing Bankruptcy in January Can Help Your Finances

With the start of a new year, many consumers considering bankruptcy may wonder when it is a good time to file. You may be surprised to learn that now may be the best time. Discussing your options with a bankruptcy attorney may help you understand timing more accurately and how it can help your personal situation. For some, waiting too long may leave the door open for foreclosure, repossession, lawsuits or garnishments.

If you know you will owe a considerable amount of debt related to income taxes you may be able to set up a suitable repayment plan under Chapter 13 bankruptcy. You can repay tax debt incurred from the previous tax year in an affordable payment plan approved by the court. In many cases, most recent tax debt (often less than 3 years old) can be paid in 3 to 5 years in Chapter 13. This keeps the Internal Revenue Service (IRS) off your back as long as you make timely payments.

Many consumers rack up credit card debt from holiday spending, according to a recent Gallup poll. The study claims that American's tend to spend more daily during the month of December than any other month through the year. For some credit cards that are an average of $300 more being spent. Keep in mind your spending habits with your credit card before you file for protection. Any large or luxury purchases over a certain dollar amount made within 90 days of filing could be a red flag to the court. In some cases you may be advised by your attorney to stop using your cards prior to filing. Discuss your situation with a qualified bankruptcy expert.


Categories: Bankruptcy
Blog Home