Wednesday, December 28, 2016
What Happens If I Have A Financial Emergency After I File Bankruptcy?
Filing bankruptcy can help you get your finances in order, so when an unexpected expense comes up you are prepared. But even with the best planning, things will happen that could not have been foreseen. Maybe you or a loved one becomes seriously ill or is in an auto accident. Or, perhaps there is a natural disaster and your home is leveled from its foundation. Whatever emergency comes up in your life, if you have filed bankruptcy you might be wondering how to stretch and already tight budget to cover an emergency cost.
There are some things to take into consideration if you have a financial emergency after you file bankruptcy, such as:
● Whether you are allowed to take out a loan to cover the expense, and if so how you get approval to do so. In some instances if you take on new debt after your bankruptcy case is filed, you have to ask the Court to approve the new debt.
● Whether the elimination of debts in your bankruptcy case has freed up enough funds to allow you to pay for the emergency while still successfully completing your bankruptcy case. If you have filed a Chapter 13 you may need to ask the Trustee to reduce your Chapter 13 Plan payments for a while in order to let you take care of the emergency, and then get back on course with your bankruptcy.
● Whether you will be approved for a loan and if so whether you can manage the repayment terms. Many lenders are willing to loan money to people who have filed bankruptcy, but often times the rate is higher which means a payment that could be outside your reach. You are well advised to make sure your budget can handle the new expense, so you don’t get into further financial trouble.
We know that life happens, and that when it does it can be hard to meet an unexpected need. We are here to help you come up with financial solutions that work and that will allow you to get back on your feet.
For more information about bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.