If you are considering filing for bankruptcy, you may initially think about holding off until the holidays are over. Many people think that filing bankruptcy during the hustle and bustle of the holiday season will be stressful and an interruption to an otherwise cheerful season. However, there are many reasons why you should file before the holidays start, rather than after. Here are three of those reasons. 

Protects Holiday Bonuses and Cash

When you file for bankruptcy, your income is usually looked at over the last six months. If you receive a holiday bonus or you receive monetary gifts during the holiday season, you may have to claim this as income. This may make your income higher than it really is. As such, it is best to file before the holiday season, as it helps to protect your holiday bonus or holiday cash from being used as part of your income. 

Eliminates Holiday Spending Being Considered Non-Dischargeable Debt

When you file for bankruptcy, debtors can look back over the past three months and eliminate what is considered to be non-dischargeable debt from your filing amount. So, for example, if you file for bankruptcy and are $5,000 in debt on your credit card, but you have bought a large screen television in the past three months for $1,500, your credit card company can claim that that isn't dischargeable since it wasn't an essential and lower your dischargeable debt to $3500. This is to prevent people from charging up their credit cards before they file. Things can get dicey if you wait to file for bankruptcy until after the holidays, as debtors will go through your credit card statements carefully. Anything that was a gift or was considered non-essential may not be discharged. As such, it is typically easier to file before the holidays as there is less chance of what you bought being scrutinized and looked at closely, which can save time. 

Helps to Reduce Stress

Lastly, filing before the holidays helps to reduce stress. Dealing with phone calls, letters and other debt collection action from creditors can be stressful. When you file for bankruptcy, it puts an end to all debt collection action. This reduces your stress and allows you to enjoy the holidays with your family. 

If you are struggling to pay your debt, you may be thinking about filing for bankruptcy. Before you file anything, it is always best to have a consultation with a bankruptcy attorney. Contact a bankruptcy attorney service today to find out if bankruptcy is right for you and when you should file.