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It may seem like a strange question, but it is worth asking yourself whether you should consider filing for bankruptcy before Christmas.  If you are like me, the last thing you want to think about this time of year is finances, especially when things are not going well. But that is precisely why we should look at this subject.  There are at least 3 good reasons to consider bankruptcy before Santa comes to town.


First, Section 523 of the United States Bankruptcy Code states that if you have incurred more than $675.00 in debt to any single creditor within 90 days of filing bankruptcy for luxury goods or services, that debt is non-dischargeable, meaning that it will not go away in bankruptcy.  We often end up spending well over $675.00 on a credit card during the shopping season. Thus, it may be wise to file now before the debt gets too high to go away.


Second, some people are fortunate enough to receive cash gifts for Christmas.  When you file bankruptcy, whether Chapter 7 or Chapter 13, you must disclose all income received for the 6 month period prior to filing.  If someone gives you $4,000.00 as a Christmas gift because they know you are struggling, you are going to need to disclose that gift as income.  This additional income may push you from a Chapter 7 bankruptcy where you don’t have to pay your creditors any money to a Chapter 13, which is a payment plan type of bankruptcy.


Third, holiday bonuses may push you off the Chapter 7 radar.  Like cash gifts, end of the year bonuses must also be disclosed as income that you have received in the 6 month prior to filling.  Thus, this additional income may be difference between you being able to file a Chapter 7 and having to file a Chapter 13, which is the payment plan type of bankruptcy.


It’s not too late.  Give me a call today to schedule your free, no obligation consultation to see if bankruptcy is the right choice for you.  If you qualify, Chapter 7 and Chapter 13 bankruptcy can help you find relief from the credit card debt and the interest that keeps accruing.  In Chapter 7, you do not have to make payments to any of your unsecured creditors during the case and most of these debts will be discharged at the end of the case, with the exception of things like child support, alimony, some tax debt and student loans.  You must qualify to file Chapter 7, however, through your income and an analysis of your assets will also need to be prepared by a qualified attorney.


In Chapter 13, you can establish a payment plan to repay some portion of your unsecured debts over a 3 to 5 year payment plan.  The amount you repay to these creditors again depend upon your income and your assets. If you have low income and a low amount of assets, your repayment plan will likely be lower.


Once you file bankruptcy, your creditors are prohibited from collecting against you in any way.  They are not allowed to call you, send you letters, file or proceed with any lawsuits or judgments against you, etc.  Thus, you can have peace of mind without any harassing calls.


Please give me a call at 281-847-4345.  I’ll be happy to sit down with you for a free, no obligation consultation to evaluate your situation and inform you of your different options on taking care of your debt through bankruptcy.  You can also send me an email at I look forward to hearing from you soon.


Rod S. Kemsley


Attorneys & Counselors at Law

505 N. Sam Houston Parkway E., Suite 400

Houston, Texas 77060

Telephone:  281-847-4345

Facsimile:  281-271-8677


We respect and guarantee the confidentiality of your case and personal information

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