Holiday Spending

I cannot count the number of times over 36 years of practicing law that I have heard the phrase, “We just wanted the kids to have one more nice Christmas.”  This is a common theme in bankruptcy cases that begin in February and March and it reflects some basis misunderstandings about how bankruptcy works.  So, here are a couple of things to know about Christmas shopping in anticipation of bankruptcy.

  1. Debts incurred for luxury goods and services may be non-dischargeable in a Bankruptcy. Special rules apply to these types of purchases.
  2. Knowing that you are about to go bankruptcy and still using your credit cards is intentional fraud. You only get to use credit when you have both the intent and the ability to repay.
  3. Your kids do not need the “GI Joe with Kung Fu Grip” (Credit: Eddie Murphy from Trading Places) as much as they need a mom and dad who are not stressed out all the time, feeling guilty and worrying about keeping their home. It may actually be good for them to see you go through the bankruptcy process and help them to learn to make better choices as adults.

Unless you are terminally ill, f you are thinking during this festive season that you will just have this one last Christmas you are wrong.  You will have many Christmases to come.  Who knows, once you find out how bankruptcy may help you, you might just give yourself the Christmas gift of debt relief this year.

This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.