For many, filing for bankruptcy is the way forward when trying to create a better financial future. However, navigating the process can feel daunting, especially when you still need to navigate paying for essential expenses, including utilities, rent, and other necessities. That is why we are here to share these four tips for managing these essential expenses while going through bankruptcy.
Understanding the Automatic Stay
An almost instantaneous benefit of filing for bankruptcy is the automatic stay. This legal protection temporarily halts creditors from pursuing collection actions. This can include stopping utility shut-offs for non-payment. However, the protection isn’t permanent—utilities may require payment after 20 days unless you provide adequate assurance that you’ll keep up with future bills.
Prioritizing Rent Payments
Rent is no doubt considered an essential expense. If you’re in a lease agreement, bankruptcy doesn’t automatically cancel it unless you choose to reject the lease as part of the process. Landlords are able to seek relief from the automatic stay to evict you, so it’s critical to stay current on rent payments. However, the relief you receive from other debt payments can help you afford your rent.
Managing Other Essentials
The beauty of bankruptcy is that it can free up money by halting debt payments, but essentials like groceries, transportation, and medical expenses must still be budgeted. To help you afford these expenses during your bankruptcy and financial struggles, you can do meal planning to help save on groceries, carpool to work to limit transport costs, and discuss payment plans with your healthcare providers to handle medical emergencies and treatments.
Seeking Assistance
If staying on top of essential expenses becomes too difficult, there is no need to fret; there are a wide variety of resources available to you. For utilities, many utility companies and local organizations offer assistance programs to help those struggling to manage the costs. For those who may have a lower monthly income, local and government organizations also offer rental assistance to help ensure you can maintain a roof over your head. There is also a wide variety of local food assistance available, from benefits systems to food pantries, to ensure you and your family remain healthy and fed.
Forging The Way to Better Finances Seamlessly
Going through bankruptcy doesn’t have to be the stressful process that it often made out to be. Between the available assistance programs and planning, you can seamlessly manage your finances while going through bankruptcy. To further ensure a seamless bankruptcy process, consider enlisting the help of a bankruptcy lawyer.
Adam M. Freiman is a Maryland-based bankruptcy lawyer with over 25 years of law experience. But that’s not all! He was also the founder of one of Baltimore’s most successful bankruptcy law firms.
Today, Adam enjoys taking a more personal approach to helping his clients at his current firm. He oversees and works on every single one of his client’s cases personally, ending the common endless cycle of communicating with paralegals.
Contact our office today to learn more about how Adam can help you with your bankruptcy case!
