Should You File for Bankruptcy After the Holidays Are Over?

Should You File For Bankruptcy After The Holidays Are Over?It seems that the stress of the holidays is only amplified once they blow over and January rolls around and you see your credit card bills and other payments that need to be taken care of. Many individuals may assume that it’s best to file for bankruptcy right after the holidays are finished, but it is a bit more complex than one may think.

Filing for bankruptcy after the holidays might be a huge error for some people, and could do more to hurt them than help them. Here are some of the biggest things to think about settling on filing for bankruptcy after the holidays.

Your Christmas Debt May Still Stick Around

The discharge of luxury goods is prohibited under the bankruptcy code if you file for bankruptcy too soon. “Luxury goods” means anything charged to a single creditor within 90 days of filing for bankruptcy that reaches a certain limit. That limit would be $725, and any goods exceeding that are unable to be counted as dischargeable.

If you splurged a bit during the holidays and ended up spending over $725, your purchases might just fall under the classification of luxury goods. While the bankruptcy code does not explicitly state what are considered to be luxury goods, they are generally considered to be anything aside from the necessities like food and essential medicine, as well as utilities.

Cash Advances Could Possibly be Non-Dischargeable

Any cash advances that are made within 70 days of filing for bankruptcy are also cannot be discharged if they exceed $1,000. If you took out a cash advance to have money for the holidays now may not be the best time to file for bankruptcy.

A Holiday Bonus Might Prevent You from Getting a Chapter 7

A Chapter 7 bankruptcy is the easiest type to file and compares you to the income of a household similar in size to your own located in Florida if you are not already under the median of the state as a whole (by which means you would automatically qualify).

Income can include any bonuses that you may have received from work, and this can impact your means check, pushing you past the limit needed to get a Chapter 7. Instead, you may need to file for a Chapter 13 bankruptcy, which is more difficult.


If you are having a difficult time deciding when you should file for bankruptcy and you live in Tampa or the surrounding area, don’t hesitate to contact the trusted experts at Weller Legal Group.

Boasting a stellar track record and serving clients with the highest quality of service for nearly three decades, Weller Legal Group will do all in its power to assist you through this difficult time.

When filing for Chapter 7 or Chapter 13 bankruptcy make sure that you get the best bankruptcy attorney to help you get your life back on track. Contact Weller Legal Group today.

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