We all have a tendency to spend a little too much over the holidays. As the bills begin coming in over the course of January, it is easy to find yourself falling behind on your payments. If you have been struggling to stay on top of your debts, filing for bankruptcy can provide the fresh start you need in the new year. Filing for bankruptcy at this time of year also allows you to rely on tax returns you will likely be receiving. Refunds you may be entitled to can help offset your costs and can help rebuild your financial security.
Credit card and loan companies often engage in lending practices that take advantage of consumers. They make racking up large amounts of debts easy, then charge high-interest rates and penalties for late payments, which makes it difficult to ever get caught up. You can easily find yourself in an endless cycle of making minimum payments and fielding calls from creditors while watching your debt accumulate and your credit rating drop.
For otherwise honest, hard-working people, bankruptcy can provide a solution. Filing at the beginning of a new year, which is also right around tax season, can provide certain benefits. If you owe money to the Internal Revenue Service (IRS), filing for bankruptcy may be able to clear away past penalties and stop any impending judgments or liens. If you are eligible for a refund, you will want to know how bankruptcy could affect it:
This means that January or February is a better time for filing, rather than waiting until the end of another year.
In addition to helping you eliminate debts, filing for bankruptcy through the U.S. Bankruptcy Court early in the year allows you to make the most of any tax refund you are likely to receive. This money can be used for the following:
At the Law Office of Karen E. Evangelista, P.C., we can help you get a fresh start in the new year by putting a stop to creditor harassment and eliminating unwanted debts. To discuss your options, contact our Rochester bankruptcy attorney and request a free, no-obligation consultation today.