If you live in the St. Louis, Missouri area and are looking for a way to eliminate your debts, personal bankruptcy may be the right choice for you. The best way to find if that is the case is by researching on St. Louis bankruptcy rules, analyzing your case and options available to you, and then deciding which one is best fit in your situation; or, much simpler: have a bankruptcy expert do all that for you.
The following article is provided by our St. Louis bankruptcy attorney.
Can I save for emergencies when I file St. Louis bankruptcy?
People often ask about planning for emergencies in case when they file for St. Louis bankruptcy. Once the bankruptcy starts you will probably have given up all of your credit cards, so what do you do if you have a financial emergency and need money while you are bankrupt?
St. Louis bankruptcy deals with your debts, but it can’t help you increase your income, or decrease your normal living expenses. If an emergency comes up while you are bankrupt, you can’t borrow to get through the crisis, because while you are bankrupt it is very difficult, if not impossible, to borrow.
It is strongly recommended that you have a back up plan to deal with emergencies during the St. Louis bankruptcy process. The best back-up plan is a relative or friend who is available to assist you once your St. Louis bankruptcy starts. If you have an emergency need for cash, having a relative you can call helps reduce your stress.
Once the St. Louis bankruptcy is initiated, you can create a contingency or emergency fund to help you in times of financial emergency while bankrupt. In fact, it is strongly recommended that you save for emergencies during your St. Louis bankruptcy.
Here’s a possible scenario. You go bankrupt, and all of your credit cards, loans, lines of credit and other forms of borrowing are gone. A short time later the muffler on your old car falls off, and you can’t drive your car until you get it fixed. You need your car to get to work. What can you do?
Obviously you can try to borrow from friends or family, or you can try to find another way to get to work. Maybe you can take the bus, or take a taxi, or car pool with a friend until you can repair your car. However, the best option is to try to have some savings put away in a “rainy day fund’ for just such an occasion.
You will probably find that it’s not that hard to save up some money, because once you file St. Louis bankruptcy you are no longer paying any of your creditors. Some of the money you were paying them can now be put in a savings account for use in emergencies.
St. Louis bankruptcy is designed to be a fresh start, and the best way to get a fresh start is to not get into any debt, so be sure to save for emergencies.