Considering Bankruptcy Around the Holidays? Smart Year-End Dos & Don’ts

If you’re exploring bankruptcy while the holidays are in full swing, timing and choices matter. Here’s a practical, Washington-friendly checklist to help you enter the new year on solid footing. (General information, not legal advice.)

 

Do: Capture your full financial picture

Make a simple folder with recent pay stubs, bank statements, a list of creditors, and any collection letters. This saves weeks during an attorney review.

 

Don’t: Make last-minute luxury splurges or cash advances

Certain year-end transactions can complicate a future filing. Avoid using credit for non-essential or “luxury” items and steer clear of cash advances if you’re weighing bankruptcy. When in doubt, pause—and ask a lawyer first.

 

Do: Prioritize essentials and safety

Food, shelter, utilities, and necessary transportation come first. If funds are tight, communicate with creditors and note any hardship arrangements.

 

Don’t: Move money without a plan

Transferring assets, paying back family, or pulling from retirement can have unintended consequences. Get guidance before you act.

 

Do: Learn which chapter fits your goals

• Chapter 7 may help discharge unsecured debt for eligible filers.

• Chapter 13 can create a structured repayment plan and protect certain assets.
  A short consult can clarify which path aligns with your income, assets, and urgency. Kuhlman Law Office