There are many reasons why people love to travel even when they are dealing with financial challenges. In addition to the enjoyment of seeing new places, people might want to stay in touch with family members or assist a loved one during a medical crisis. Taking a trip can be costly though, so if you’re thinking of filing for bankruptcy or have already sought relief under Chapters 7 or 13, there are some important things to consider.
Specific travel-related bankruptcy concerns include the following:
- Pre-filing lookback period — Money owed for expensive purchases that are made in the 90 days prior to filing might not be dischargeable in a Chapter 7 bankruptcy. The court may view travel costs as irresponsible spending, which could complicate your case or lead to accusations of fraud. Therefore, if you’re intending to seek bankruptcy protection in the next three months, you’ll likely be liable for any vacation costs or other travel expenses you accumulate.
- Accessibility of assets — Even you If you plan to travel internationally, ensure that your assets remain accessible and protected. Transferring funds abroad might seem like an effort to shield them from creditors, and can result in serious legal consequences.
- Creditors meeting and other court dates — You must attend all required hearings, including the meeting of creditors (341 meeting). Missing these appointments could delay your case or result in dismissal.
- Approval of Chapter 13 trustee — Should you be subject to a Chapter 13 repayment plan, you might need permission from the bankruptcy trustee to travel, especially for extended trips outside of the country. Be prepared to explain how your travel expenses fit within your budget and do not interfere with your ability to repay creditors.
Whether you’re traveling before or during bankruptcy, it’s essential to consult with your bankruptcy attorney. Jeff Field & Associates provides knowledgeable counsel to Georgia clients on all types of bankruptcy-related situations. With proper planning, you can avoid unnecessary complications and focus on achieving a fresh financial start. For a consultation, please call 404-381-1278 or contact us online. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Scottdale.