One of the most popular New Year's resolutions that people make each year is to improve their physical fitness. Why not resolve to improve your financial fitness? Filing for bankruptcy may be your first step towards financial wellness if you have debts that you are unable to repay. Bankruptcy puts an automatic stay on debt collectors and allows you to discharge your eligible unsecured debts without sacrificing your most valuable possessions, such as your home and vehicle, by continuing to make payments for those assets. There are several reasons why bankruptcy may be a good New Year's resolution for you:
- Getting a Fresh Start: It is difficult to improve your financial health when you have debts that will not go away. Your available income may be unable to keep up with your scheduled debt payments, causing your debt to grow worse. Completing bankruptcy gives you a fresh start that is free from the pressure of creditors. From there, it is easier to figure out how to budget your finances and find ways to save money.
- Timing with Taxes: You can use bankruptcy to pay off or discharge income tax debt that you owe to the IRS or state, but there are some conditions to discharging tax debts in bankruptcy. One of those conditions is that the income tax debt must be at least three years old to be eligible for discharge. Income taxes are due after the start of the new year, which means that some of your tax debt may be newly eligible for discharge as long as your recent tax returns have been filed on time.
- No Reason to Wait: People make New Year's resolutions because it is a time when they assess their lives and identify things they want to change about themselves. Since we are entering 2020, you will be looking even further back at the past decade. You may have been considering bankruptcy for a while but have put off making a decision. If you need to file for bankruptcy, there is no reason to delay the process. Your debt problems are unlikely to solve themselves and may get worse instead. The sooner you file for bankruptcy, the sooner you can find relief.
Contact a Denton County Bankruptcy Attorney
The idea of filing for bankruptcy can be nerve-wracking, but remember that you are not going through the process alone. A Frisco, Texas, bankruptcy lawyer at The Page Law Firm will lead you every step of the way and show you how bankruptcy can help you. Schedule a free consultation today by calling 214-618-2101.