Bankruptcy is a way to
reduce or wipe out your debts, but if there are certain things you want to keep
you do have to keep making payments. Most people opt to keep their cars and
house, and so continue to keep up with those monthly payments even if they file
for bankruptcy. But what about some of your other needs, such as electricity
and insurance? There are a lot of questions about how every day expenses are
handled when a bankruptcy gets filed, and it is important to know the answers
because no one wants to have the air conditioning turned off or get caught driving
without auto insurance. The good news is that if you file for bankruptcy, you
get to eliminate some debts, which makes it easier to pay others. For instance,
if you no longer had to pay all of your credit card debt, you might be in a
better position to pay your utilities and buy groceries every week.
Another expense that
people are happy to continue paying when they file bankruptcy is their life
insurance premiums. But since this is not a daily need, you might be wondering
if you will lose your life insurance if you file for bankruptcy. You will not, and here is why:
•
Your debt load will decrease
when you file bankruptcy.
•
When you owe less, you have
more disposable income to work with each month.
•
When you have more disposable
income to work with each month, you can allocate the funds on hand to the
things you need.
•
Life insurance is a necessity
for most families, and when you have enough money to pay the premiums each
month, the provider will not cancel your policy.
Bankruptcy can also be helpful in other
ways. For example, you can reduce the amount of debt on your car if you file a
Chapter 13, and you can also lower the interest rate on an auto loan by filing
a Chapter 13 bankruptcy case. If you file a Chapter 7 case you will be allowed
to get rid of all of your unsecured debt, which is the appeal to this type of
case for many consumers. High interest rate credit card debt is one of the most
difficult types of debt to keep up with, but when you file a Chapter 7 case you
no longer have to worry about how to pay off those card balances.
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.
No comments:
Post a Comment