Towards the end of the year we have observed that collection action increases as collection agencies and banks work to meet year-end collection quotas. This is especially hard on folks with families who are trying to get by and enjoy the holidays but who are getting increased calls and pressure from creditors.
Hiring a Denver based bankruptcy attorney who you can refer all calls to helps a lot because the collectors are less likely to bother you, or sue you, when they know a bankruptcy is on its way. Hiring a bankruptcy lawyer now, even if you are not filing for a month or so will stop almost all activities and allow you a breath of fresh air for the holidays before filing after the first of the year.
The biggest planning issue in year-end cases is tax refunds. If you file before you receive your refund, you may lose it to the bankruptcy trustee. While some refunds are exempt, refunds from wage withholding are not and have to paid out to creditors by the trustee.
Folks struggling with money problems cannot afford to lose their refunds so the proper planning would be to start the case with your attorney before tax season, but actually file after receiving the refund and spending it on ordinary expenses for the family before filing. You cannot spend it on debts or give it to family members, so this MUST be done in consultation with your attorney.
Please give me, Peter Milwid, a call at 303-831-0733 to discuss your situation and come up with a plan that will allow you to enjoy the year-end knowing you will be debt free in 2017.