Bankruptcy is not something anybody can predict, sometimes, things just don’t work out the way we envision them to. Do you find yourself struggling to pay your creditors? Well, it may be time to file for bankruptcy. You may simply have taken a bank loan and came up with a payment plan but with time it took a toll on you and you were unable to pay. Filing for bankruptcy is something that is quite severe and may need a few consultations before you do.
Can You Travel When You Have Filed For Bankruptcy?
The truth is that filing bankruptcy may come with a bit of restriction. This is especially because a majority of your income goes towards paying off your debts. However, the good news is that you can still travel even when you have filed for bankruptcy. How? Well, below are some pointers of how you can still travel amidst being bankrupt.
1. Gifts from Family and Friends
Sometimes, a friend or a relative may feel philanthropic and may decide to fund you to travel alongside them to- magnificent Maui or some other place. It may be a token of appreciation for something you did for them in their time of need or simply just a treat, or it could be your birthday, and the trip comes as a special surprise for you. Whatever the reason, this is one successful way you get to tour new places without interfering with any payment plan you have put across for your creditors.
2. If you have filed Chapter 13 Bankruptcy
There are different types of bankruptcy, for example, chapter 7, 12, 13 and so on. For chapter 13 bankruptcy, this does not involve any liquidation. It does not include your property being put up for sale but rather, coming up with payment plans that are friendly to you. In this case, there’s still allowance for traveling most especially because you have already submitted a plan on how to pay up your debts. There are circumstances that you can take up another loan even when you have filed bankruptcy, but it’s dependent on why you need the loan.
You could get the loan only if it’s vital like for example if your car was involved in an accident which requires you to buy another one. However, the only limitation is you can only get a car that’s equal to the value of the previous one. In some cases, you may have to demonstrate through paperwork how you intend to have room for repayment for this particular loan.
3. Sell Your Junk
Once you have come up with a plan on how to pay your creditors, what is left may be too minimal to sustain the family or even have an allowance for luxury. In this case, you may opt to put up things that you don’t use anymore for sale. It could be an old phone or laptop that you don’t use that is unnecessary. You can make a list of the items that you don’t require, and then consider the pricing carefully before you sell them online.
Once you put them up for sale, and you get willing buyers, the money you get in return may be enough for you to travel to that particular place you have wanted to explore. This way, you don’t have to try getting other sources like payday loans to finance your trips.
4. As Part of the Company Incentive
Let’s say you’d like to take a trip somewhere like Argentina but you may not have the financial capacity to do so. If you are working for a company that has provision for traveling, you could take this as an advantage as they offer various packages for different employees. The company you work for may have a provision for an annual traveling allowance. Therefore, even if you have filed for bankruptcy, it doesn’t affect your all-paid trip.
Tips on Avoiding Bankruptcy
As much as bankruptcy is inevitable sometimes, it may affect you negatively, and you may want to consider some of the following things to avoid it.
• Once you take out a loan, ensure that the interest rates are favorable for you. Also, ensure that the repayment plan is flexible for you and you can easily pay without any struggle.
• Live within your means. Prioritize things and get to budget and spend on necessary stuff.
• Don’t take on too many loans at once. Numerous loans may overwhelm you when it comes to paying them. Eventually, you end up immersing yourself into more debt as you take more loans to cover the already existing ones.
When you go bankrupt, it ends up hurting your credit report negatively. For example, for a chapter 13 bankruptcy, it will normally stay on your credit report for seven years. Therefore, get help and advice on how to avoid bankruptcy by whatever legal means.
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