Don’t wait … file bankruptcy before December 31

Timing is everything … even for bankruptcy!

People often ask us if it makes any difference when during the year they file bankruptcy. The answer is a definite yes! Many people figure it’s December, it’s the holiday season … I’ll wait until the new year and then start fresh in 2017.

Waiting could cost you money!

The biggest thing to consider this time of year is tax refunds. I know it’s not tax time yet, but if you usually receive a tax refund, you need to know this … the trustee will receive any tax refunds for the year you file bankruptcy and any prior years. If your tax returns are up to date, and you file before December 31, the trustee will get the 2016 refund. If you wait until January 2017 to file bankruptcy, the trustee will get your refunds for 2016 and 2017. If you are considering bankruptcy, call us now at 310-6398 and find out how the tax refund rules would affect you.

People whose work is seasonal should also think carefully about the timing of a bankruptcy. The amount you pay in to your bankruptcy estate and the length of your bankruptcy depend on your income and the calculation is an average of your actual earnings while in bankruptcy. If you are a first time bankrupt and you file when your earnings are at a high point in the year, you can end up in bankruptcy for 21 months instead of 9 months – that’s an extra year and the amount you pay will be higher. Just laid off from seasonal work and having trouble managing your debts? Call us at 310-6398 or visit us on the web at vineandwilliams.com. We will meet with you for free to review your situation and talk about your options.

If you would rather file a consumer proposal to deal with your debt, no problem! The sooner you start, the sooner you finish. You keep all your tax refunds and we will look at your income over the course of the year to make sure the proposal is affordable for you throughout the year.

Give yourself the gift of living debt and stress free … before December 31!

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