When it comes to issues of safety, the top of the list usually starts out with car and home safety. For instance, when new parents take a newborn home from the hospital they do so by buckling the infant safely in a car seat. Another good example of how we all like to keep safe is seen by looking at how many of us have home security systems. Many private residences have an in home monitoring system, designed to alert the homeowners to a break-in. These examples make perfect sense, and instantly come to mind during a discussion on safety. But it is also important to keep your money safe. You might be thinking this means maintaining accounts in insured banking institutions, but there is more to financial safety than where you bank.
In addition to keeping the money you have today safe by picking a secure financial institution, you also need to think about how to keep your future income stream safe. This might mean making wise investments, but should also include learning how to hang on to your money if you become financially distressed tomorrow. Here are some ideas on how you can keep your future income safe if you file bankruptcy to relieve financial distress:
• Discuss your bankruptcy exemption options with your attorney before you file. You are allowed to exempt certain items from bankruptcy, and this might include an inheritance or the proceeds from a pending lawsuit. But there are restrictions and you need to have a good understanding of these things before you file a bankruptcy case.
• If you are filing a Chapter 13, your future income will be used to make the Chapter 13 Plan payments. In order to safeguard your income so you can make the payments, you need to report your salary accurately. This will give you the chance to continue earning a wage, and keeping a part of that income for yourself after your Plan payments are made.
• Assets you own that are easily converted to cash, or an income stream such as a rental property, have to be properly disclosed when you file a bankruptcy case. If you fail to do so, you risk losing not only the asset but also the future income that accompanies that asset.
Talk to a qualified bankruptcy attorney today to find out how filing a case can impact your future income. We focus on helping people get out of debt, by filing bankruptcy or some other debt management plan, and can help you too.
If you are considering filing bankruptcy to help eliminate debt, or want information on other options, contact us at www.DsouzaLegalGroup.com.