Wednesday, December 26, 2012

Why December is Typically a Slow Month for Bankruptcy

              In December most bankruptcy attorneys in in the slowest part of their year.  They are reorganizing their offices, staffs, and preparing for a new year.  Some like me are writing blog posts about bankruptcy in Indiana.  Many will even take a week or so off for Christmas.  Why??  It's probably for a few reasons.

              The first reason is the one that many people think of.....that filing bankruptcy is not a great way for most people to celebrate their Christmas.  Many people (understandably) would rather enjoy the holiday season without the stress of filing bankruptcy.  This is not to say that I never file any bankruptcy petitions during the holiday season.  In fact, I believe a few years ago I had a 341 meeting at the bankruptcy court in Indianapolis on December 23rd.

             The reason that many people are less aware of that bankruptcy filings slow down in December is due to income tax refunds for the next year.  If you live in the Indianapolis area and file a Chapter 7 bankruptcy in December you can probably kiss the majority of any 2012 income tax refund you may have received in 2013 goodbye (less any earned income credit you receive).  For many people who need to file bankruptcy an income tax refund is imminent due to decreased earnings in 2012 and they need that money for the necessities of life.  As a result, if no creditors are forcing bankruptcy through garnishment proceedings or through freezing a bank account, etc., I will normally counsel clients to file their income taxes as early as possible in 2013 and to use their refund on living expenses, home maintenance, car repairs, etc.  I often ask my clients to tell me how they would like to spend their income tax refund and to send me an e-mail so that I can "ok" it.  I like to see how my clients propose to spend this money because there are some things that the money could be spent on just prior to filing bankruptcy.  For example, paying back a relative, going on a vacation and buying a flat screen television are likely things I would counsel against.

  I have found that most people who are in need of filing bankruptcy have been struggling financially for some time and there are lots of things they have not been spending money on in an effort to pay creditors.  For example, clothing, a mattress, car repairs, home repairs, a new or used appliance to replace one that went out long ago, car insurance, and life insurance are common just to name a few.

              But in another week bankruptcy attorneys will once again be working like busy bees.  Since many folks put off the decision in favor of or against bankruptcy over the holidays there is typically a rush of people who want to meet with a bankruptcy attorney in January.  If you are one of those people who have been trying to dig your way out of debt with little success over the past year or two please contact me.  I offer an initial consultation free of charge at my Carmel office and I can explain to you the pros and cons of filing bankruptcy and can answer your questions regarding bankruptcy (including how much it would cost and how in the world you might be able to pay for it).  If you would like to meet with me call my law firm, Halcomb Singler, at 575-8222 or click here and we will e-mail or call you to set up an appointment.

Halcomb Singler, LLP, is a debt relief agency.  It helps people file for bankruptcy under the bankruptcy code.  No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so.  The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses. 

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