‘Tis the season for buying, and then buying some more. If you are planning to file a Delavan bankruptcy in the near future, this can mean piling more debt on top of current debt. How can you survive the holidays without damaging your already impaired credit and without ruining your chances of a successful Delavan bankruptcy filing? Below we have outlined 5 tips for overcoming major holiday bankruptcy mistakes.
5 Holiday Bankruptcy Mistakes to Avoid
1. Always consider your Delavan bankruptcy before doing anything. Don’t rush out buying gifts without a plan, a budget, and a savings stash. When filing a Delavan bankruptcy, you can’t place the bankruptcy attorney charge and/or bankruptcy filing fee on a credit card. You will need to pay cash.
2. Don’t purchase gifts where you need to make recurring payments. It’s great to give that brand new laptop to your teenage son or daughter for Christmas, but not if it means an ongoing financial burden. Think hard before you buy. Even a personal mobile phone has recurring service and data charges. Payment options and continual service plan payments are a big “No”.
3. Purchase everything with cash. When planning a Delavan bankruptcy filing after the holidays, purchasing anything with a credit card is a huge mistake. When you file bankruptcy, the trustee will take a look at your recent credit card purchases. If you paid for gifts, failed to make payments, and then tried to write the cost of the gifts off in bankruptcy, you just might end up with debt that is not discharged.
4. Never open new lines of credit. This is one of the biggest holiday mistakes made by bankruptcy filers. No matter how good the deal is, do not fall for this trap. High interest rates come with most retailer credit cards. You most likely will not be able to pay off the debt before the promotional “No Interest” period ends. In addition, some store credit cards (Furniture and Jewelry Retailers) are not dischargeable in bankruptcy unless you agree to return the items purchased.
5. Don’t try to get rid of assets by gifting them to friends and family. Another way to upset the bankruptcy trustee is by gifting large amounts of cash and assets to your friends and family. Before you gift, consider your Delavan bankruptcy filing. The bankruptcy trustee may look back an entire year to search for any asset transfers and cash gifts. If the bankruptcy trustee finds large transfers, the assets and cash must be returned and you may be charged with bankruptcy fraud.
Contact Our Delavan Bankruptcy Attorney
If you are planning to file a Delavan bankruptcy after the holidays, remember to follow the above rules to avoid major bankruptcy mistakes. Prepare a budget and plan before heading to the stores for the holidays. Don’t forget to save some cash for your Delavan bankruptcy fees.
If you have other questions regarding a Delavan bankruptcy, please contact our Delavan bankruptcy office at 262-725-0175. We offer a free initial consultation and can answer all your bankruptcy questions. Happy Holidays, from Wynn at Law, LLC.
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*The content and material on this web page is for informational purposes only and does not constitute legal advice.
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