How to survive the Christmas holidays in Bankruptcy?

Christmas is already at the doorstep, which directly means more credit card bills. The rise in your credit card bills depends solely on you, like how much do you spend during festivities? How much you're paying out for gifts and feasts for friends and family? And so on.

Eventually, every celebration requires money. But for people who are already in debt, the Christmas holidays can be a stress.

Now the question arises what is the solution to this problem? How to survive the Christmas holidays in Bankruptcy?

We all know that it is tough to enjoy or even survive the holidays when your finances are not in a good state. But you need to focus on your family, not on your financial problems. So, we will be sharing with you what shall you do in these tough times and what can be the wisest option. Right away, let us read the full blog!

When to File for Bankruptcy- before or after Christmas?

First, you have to decide which bankruptcy is ideal for you, whether Chapter 13 or Chapter 7. With chapter 13, you can save some extra money for celebrating the Christmas holidays. How? If you are drowning in debt, filing a Chapter 13 to re-organize your debts can be a good option. Also, some debts can be removable under Chapter 13 and not under Chapter 7. You can reach to an agreement with your creditors to bring down the rate of interest or amount overdue.

But if you believe in a new start, then Chapter 7 bankruptcy will take you out of almost all of your debts. It eliminates unsecured debts (Credit Cards, Medical Bills, Lawsuits, Judgments, etc.), and your debts are gone (no repayment is required) in a short period. Chapter 7 clears almost all your debts, so now you can use a portion of your income to buy presents and sweets for your friends and family to celebrate your Christmas holidays. 

What should you keep in mind if you are filing for Bankruptcy before Christmas?

Credit cards during the Christmas holidays can create more problems for people with already low income. If a person just got free from bankruptcy, no credit card organization would be willing to provide them a card because of the low credit score. And s/he don’t have that sort of time to repair their credit score. In any case, if any organization offers a credit card, then it might limit the amount provided or charge high-interest rates. That’s when seeking advice from a bankruptcy lawyer can prove to be helpful, as he will suggest a solution after assessing your income and credit card bills.

After a bankruptcy release, you might not prefer gathering more and more credit card bills which you won’t be able to pay. If you are not cutting down your expenses, then you will end where you began. So, you must be extra careful with every cent you are spending because this can lead you back to debt again. The only solution is to be aware of where you are spending your income and clear your monthly credit card dues to avoid more problems.

 

What should you keep in mind if you are filing for Bankruptcy after Christmas?

Filing after Christmas can give some advantages like:

●      Chapter 7 - If you are filing for chapter 7, your credit card bills will vanish and, it will clear all your unsecured debts.

●      Chapter 13 - If you are filing for chapter 13, you can get low-interest rates on your credit card bills and will get a limited time to pay your bills.

 

Conclusion

If you have unbearable debts, bankruptcy may be the only way to spend your holidays peacefully. Spending Christmas without shopping and gifts is a hard thing to do, and no one should deal with it. You have to decide which type of bankruptcy you are going to file. Hereafter, the most crucial thing is timing. At what time, before or after Christmas, you should file. To get yourself out of this confusion, consulting with an experienced bankruptcy lawyer would be the best option so that you can get perfect guidance and you can survive your Christmas holidays.