When your bankruptcy case is evaluated by a trusted and qualified bankruptcy trustee, one aspect he or she will take into consideration is your financial needs compared to your financial luxuries. When dealing with bankruptcy, and especially Chapter 13 bankruptcy, a debtor’s repayment plan will often be structured around his or her needs. For this reason, it is important to know how needs are formally differentiated from luxuries.
If you have questions about the difference between your financial needs and luxuries and how it pertains to bankruptcy, it is strongly advisable for you to consult with an experienced legal representative. Get started on your case today. Contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC, by calling 414-377-0518.
What Are Necessary Expenses?
To fully understand how bankruptcy will impact your life, you must first understand the difference between “needs” and “luxuries.” Needs are expenses that are necessary to live on a daily basis and therefore have a higher priority than bankruptcy payments. Some common examples of necessary expenses include the following:
- Costs for shelter such as a mortgage or rent payments
- Transportation costs including the cost of the vehicle, gasoline, and maintenance
- The cost of food
- Medical bills and prescriptions
- Expenses related to caring for your child
It is important to note that though transportation is classified as a necessity, this does not guarantee that you will be able to retain control of a vehicle that is unusually expensive simply because it is what you are already driving. A knowledgeable attorney can help you to better understand how your current living situation might be affected by a bankruptcy filing.
For assistance determining which among your current assets and obligations may be regarded as luxuries, contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC, at 414-377-0518 today.