You can file for bankruptcy any business day of the year. However, there is often a trend of many people choosing to file for bankruptcy in the late winter or early spring. Since spring will be here sooner than we know it, we are taking a look at a few of the reasons why people choose to file for bankruptcy at this time.
After the Holidays
The holidays are an expensive time of year and many people stretch their budgets beyond their means to give their families an enjoyable holiday. Many holiday gifts are purchased with credit cards and families who are already struggling to pay their bills may suddenly be completely overwhelmed by their new additional bills and may begin to consider options for financial relief.
Time for Tax Refunds
Bankruptcy involves certain fees for filing, court costs, your attorney, and additional paperwork. Households who cannot afford to pay their bills likely do not have the money sitting around to cover the costs of filing for bankruptcy. However, when these individuals or married couples receive their tax refund, that money can help them pay to file bankruptcy to resolve many of their financial problems.
Timing is also important to protect future tax refunds from seizure by the Chapter 7 bankruptcy trustee. Your tax refund is only vulnerable for the part of the year that passed before you filed for bankruptcy. So for example, if you file at the end of the first quarter of the year (end of March), only a quarter of your next tax refund will be subject to seizure.
However, you also do not want to file too soon toward the beginning of the year. If you file for bankruptcy and the IRS has not yet sent your refund, the bankruptcy trustee can seize your refund once it comes in. Therefore, many people aim to file as soon as possible after they have received their refund and spent that money on bankruptcy costs.
Contact a St. Petersburg, Florida Bankruptcy Attorney for More Information
Spring may be the right time to file for bankruptcy for some but not for others. The best way to determine what is right for you is to discuss your options with an experienced St. Petersburg bankruptcy lawyer. Call Berkowitz & Myer at 727-344-0123 today.