Deciding to file bankruptcy doesn’t mean you should stop paying all your bills. Smart money choices during this time can help your bankruptcy process go smoother. Let’s look at which bills deserve your attention.
Mortgage or rent payments
Your house payment should stay at the top of your priority list. Mortgage payments protect your family’s shelter and maintain stability during bankruptcy. Missing payments could risk foreclosure before the bankruptcy protection kicks in later.
Car payments and insurance
If you need your car to get to work or transport your family, keep making these payments. This prevents repossession before you finish the filing process. Additionally, auto insurance is still legally required in Michigan even if you’re filing for bankruptcy—and it can protect you from financial disasters if you get into an accident.
Utility bills
Remember, utility companies can shut off these services if you don’t pay—bankruptcy or not. Some providers may work with you if you’re struggling, but this isn’t automatic. It’s best to reach out to them first if you can’t pay the full amount.
Child support and alimony
Missed child and spousal support obligations won’t go away in bankruptcy. Courts consider these payments essential for dependent family members. Falling behind can result in serious consequences like wage garnishment or license suspension.
Current tax obligations
While bankruptcy can help with some older tax debts, you still need to pay current taxes. The government can collect these even during bankruptcy. Filing tax returns and paying current taxes helps avoid complications.
Essential medical care
Your family’s health cannot wait. Continue paying for necessary medications and treatments. Medical debt often qualifies for discharge in bankruptcy, but you still need to maintain essential care.
Preparing for your fresh start
Bankruptcy offers a path to financial refresh. It helps you erase unsecured debts like credit cards and medical bills. The bills you prioritize now help maintain stability during this transition.
An experienced bankruptcy attorney can provide more guidance about your specific situation and help you develop a strategy that protects your family while preparing for long-term financial health.
