Avoid Using Credit Cards for Christmas Purchases

Avoid Using Credit Cards for Christmas Purchases


Avoid Using Credit Cards for Christmas Purchases

It’s that time of year again… the most joyful time yet also the most stressful time of year for
folks who struggle financially. Christmas keeps getting bigger and bigger each year as expectations from your kids or family far exceed your income level which keeps getting smaller and smaller each year.

Christmas is simply expensive. There is no way around it. Even if you don’t spend a lot of money on the holidays, you are still spending more than you do in any of the other 11 months out of the year.

Let’s face it, who really stores away money in preparation for Christmas? Not many. For most of us, there is the good ol’ credit card that will come really handy when Jr. wants that new Ipad, or Mac book and won’t take no for an answer.

Charging it up!

If you know that bankruptcy is in your near future, avoid charging purchases for luxury items or services totaling more than $600.00 in the 90 days prior to your bankruptcy filing. Creditors could potentially object to your debt, claiming a presumption of abuse and your debt could potentially not be discharged (erased).

Avoid Using Credit Cards for Christmas Purchases:

If you MUST charge your credit card for Jr’s new Ipad, you should avoid filing bankruptcy until at least the 90 days have passed.

This rule makes complete sense. It would be abusive for a debtor to foresee bankruptcy in the near future and then make luxury purchases knowing that these debts will never be paid. The simple solution for Christmas this year is spending only what you have in the bank and not relying on the credit card to get you through.

For more information or an in office consultation with one of our attorneys regarding bankruptcy, please contact the Lam Law Firm.

Lam Law Firm, LLC •1335 44th Ave North • Suite 100 • Myrtle Beach, SC 29577

DISCLAIMER: The information contained on this page is for general information, only. It is not intended to be legal advice, nor should you make legal decisions based on this information. Please consult one of our attorneys to see how the law applies to your particular situation.