Why waiting until January 2014 to file your bankruptcy was a good decision?
Timing can be very important to ensure that you are able to successfully navigate through the bankruptcy process. There are several reasons why waiting and filing in January 2014 could be better for you.
First, we all know that Christmas costs money. There are always extra expenses for travel, purchasing gifts and holiday decorations. These are costs that can compound an already fragile financial situation. For instance, if you were filing a Chapter 13 bankruptcy and restructuring your debt, your bankruptcy payments would not start until 30 days after your bankruptcy filing. That would put your first payment in February 2014 (if you filed in December 2013, your first payment would be due sometime in January 2014 depending on when you filed). This could have a huge impact as to whether you can make your monthly payments on time.
Second, waiting to file in January 2014 could actually save you money. In some cases, people earn less in the month of December. This is typically due to lack of production in the business world (besides retail). So your commissions or bonuses may be effected. Although this is bad news, this could actually save you money from a bankruptcy standpoint. When you file bankruptcy, you are required to show your last 6 months income, if your December income was lower, this could help lower your monthly bankruptcy payments (in a Chapter 13) and it could help qualify you for a Chapter 7.
However, filing in January could be a disadvantage if you received a large Christmas bonus as that would be used to determine your Chapter 13 payment plan or whether you qualify for a Chapter 7.
Remember to consult with your Dallas bankruptcy attorney, if you are considering filing in December.