The busy and expensive holiday season often creates stress for many people, especially for those dealing with mounting debt. If you’re considering filing in the new year, it’s important to consult with a bankruptcy attorney to ensure the solution is right for you. The legal team at Knochel Law Offices, PC, has helped numerous residents throughout Bullhead City, AZ, successfully achieve debt relief. They make sure each client understands what they need to know about petitioning for bankruptcy after the holidays.

Qualifying for Bankruptcy

You can’t simply request a bankruptcy because you bought too many gifts for Christmas. The law has provisions that state any credit charges made within 90 days of filing cannot total $650 or more when the money was spent on luxury goods and services. If this is the case, it will be seen as non-dischargeable debt, and you will still be responsible for paying it back. Although, if the items purchased can be considered essentials for survival, you may be able to receive a discharge when you file.

Establishing Eligibility

Your bankruptcy attorney will likely discuss issues of eligibility too. For instance, getting a holiday bonus or cash for Christmas could make it look as if you have more income than you do. Before petitioning for bankruptcy, you must establish eligibility by taking a means test to show how much money you had come in the last six months. This will include any extra income you received during the holidays. If it ends up being more than the amount allowed, you may not qualify to file.

These are just a couple of the factors to keep in mind when deciding whether petitioning for bankruptcy in the new year will help resolve your debt problems. An experienced lawyer at Knochel Law Offices, PC, will carefully assess your situation to figure out if it’s in your best interest to file. Call (928) 444-1000 to schedule an appointment with a bankruptcy attorney to receive quality legal counsel, or visit them online for more information on the related services they provide.