Financial Needs vs. Luxuries
When you file for bankruptcy, your financial situation will be evaluated by an experienced bankruptcy trustee. One aspect that will be considered is your financial needs versus your financial luxuries. During bankruptcy, especially forms that involve repayment plans, a person’s financial needs will be assessed in relation to his unnecessary expenses to determine an appropriate repayment plan that suits his or her financial situation.
If you or someone you know is considering filing for bankruptcy, contact an experienced Chicago bankruptcy attorney of the Law Offices of Stuart B. Handelman today by calling 312-360-0500. We can help you determine the best form of bankruptcy for your needs and financial situation.
Understanding which of your expenses are considered “needs” versus “luxuries” is essential for comprehending how bankruptcy may affect your daily living. A person’s necessary expenses are those that make regular life manageable, and courts often understand that these costs come before bankruptcy payments.
Some expenses that may be considered necessary during the bankruptcy process include:
- Food costs
- Transportation costs, such as car maintenance
- Shelter costs
- Child-related expenses
However, this does not necessarily mean that you will keep your exact home and vehicle if you file for bankruptcy. For instance, in Chapter 7 bankruptcy, a person’s debts are often eliminated through asset liquidation. In these cases, you may have to choose a more economically-friendly vehicle or home in order to sustain daily living.
Bankruptcy can be a complex process, but if you have a dedicated attorney on your side, you may be better prepared to handle the process. If you or someone you know is thinking of filing for bankruptcy, contact a knowledgeable Chicago bankruptcy lawyer of the Law Offices of Stuart B. Handelman today at 312-360-0500.