Bankruptcy Relief for Credit Card Usage over the Holidays

Over the holidays, gift-giving abounds. From family and friends and even to coworkers and parties, the gift recipient list seems to grow each year. With the pressure to give nice things, get nice things, and surprise your loved ones with the perfect gift, it’s common to spend a bit beyond your means. Many individuals find themselves in a great deal of debt after the holidays and unsure of where to turn. Many families are already in difficult financial circumstances and have considered filing for bankruptcy. They may decide to have a last shopping splurge for their loved ones and hope that their debt is discharged when they file for bankruptcy anyways.

Tips on Filing for Bankruptcy after the Holidays

Filing for bankruptcy after a holiday splurge may not be as easy as it sounds. The Bankruptcy Abuse Prevention and Consumer Protection Act was set in place in order to dissuade individuals from abusive practices. Debts that were incurred without any intention of repaying them are considered non-dischargeable and even fraudulent.

Things you need to know:

  1. Charges that total $550 or more within 90 days of filing for luxury goods at any one creditor may be non-dischargeable.
  2. Cash advances totaling $825 or more within 70 days before an order of relief may be non-dischargeable.
  3. Luxury goods or services are anything other than services or goods reasonably necessary for maintenance or support.

With help from a skilled bankruptcy attorney, you can work to determine your best options based on the charges and purchases you made over the holidays. Filing bankruptcy may be able to provide you with significant relief, if it is done in the right way and within a specific timeline.

Learn more about your options by speaking to an experienced Worcester attorney from the Law Office of Robert W. Kovacs, Jr. Contact us today!