Debt and the holidays often come hand and hand. Many Americans will overspend on their credit cards around the holidays. For those facing bankruptcy cases will have to take a few things into consideration before spending.

1. Holiday Debt
&
Bankruptcy
HOW
TO
DEAL WITH
Emile Harmon

2. During the holidays you
might be tempted to
overspend especially on
your credit card.

3. If you are facing the
possibility of filing for
bankruptcy, consider the
following…

4. First, your credit card
spending.
The Bankruptcy Code states that if an individual
incurred more than 600 dollars on “luxury
goods” (clothing, electronics, etc) within ninety
days of your bankruptcy filing, then these debts
will not be dismissed.

5. First, your credit card
spending.

6. Next, the merchandise you
spent money on.
The items you buy with your card must be
considered luxury purchases. The Bankruptcy Code
does not define what exactly this type of item is,
but if your purchase benefits the health and
welfare of your family then it will most likely not be
considered a luxury item.

7. Next, the merchandise you
spent money on.

8. Lastly, your cash
advances.

9. Lastly, your cash
advances.
The Bankruptcy Code also includes cash advances
similarly to how they view purchasing luxury goods
that amount more than 600 dollars. The individual
is still accountable for any cash advance within 70
days of filing.

10. Take all of these into consideration when facing the
possibility of filing on top of credit card debt.