Thursday, November 17, 2016
Can I Take A Vacation If I File Bankruptcy?
There is nothing more relaxing than taking much needed time off from work, but if you are experiencing financial difficulties this can be hard. Let’s face it, vacations cost money, and when you are low on funds it is not relaxing at all to take a trip and be strapped for cash while out of town. The benefit to filing bankruptcy is that most of your debts are no longer due, and this can really free us some money each month. But the question is, what do you do with your extra funds?
Most people use the money they save from filing bankruptcy to pay other debts. Many times a family that is struggling to make ends meet needs to eliminate some of their debts in order to be able to keep current on their other expenses. When payments on high interest rate credit cards are no longer due, the money you would have paid to those companies can be used to make your house or car payment, or to buy groceries. In some instances, the amount saved is enough to put some aside for a rainy day, and some people even wonder if they can finally do something fun like take a vacation. You are not prohibited from traveling just because you have filed bankruptcy, and as long as your case is on track you should not worry about going out of town. But you should take care to be sure that the following things are in place before you make this decision:
• All of your financial documents have been provided to the Court.
• The Trustee has not raised an eyebrow about questionable expenditures.
• You do not have any Court hearings scheduled for the time you plan to be out of town.
• If you filed a Chapter 13 case, you are current on your plan payments and will not miss one due to taking a trip.
• If you have reaffirmed any debt, you are able to maintain those payments even if you go on vacation.
• You do not use credit cards to finance the trip.
• You make a budget and stick to it, even while gone.
We understand the stress that is caused by having more debts than you can pay, but taking the step to file bankruptcy is meant to alleviate this stress. If you need a break, that’s fine too, but just be sure that your actions do not cause additional stress. It would be a shame to see all of your hard work in making sure your bankruptcy case goes off without a hitch go down the drain in exchange for a quick weekend getaway. Always keep in mind, the bigger picture is not next week or next month, but it is years down the road and we want you to be secure in your finances for a long time.
For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.