How to Avoid Filing for Bankruptcy after a Natural Disaster
Sometimes, filing for bankruptcy after a major disaster is the best option. These tips, however, can help you avoid the need for it:
Get Proper Insurance
Lack of proper insurance is by far the biggest issue you’ll face when disaster strikes. Review your insurance policy carefully, before a disaster threatens, and make adjustments as necessary.
Inquire about Financial Assistance
Many federal, state and non-profit programs, including FEMA, offer financial assistance in the wake of a major national disaster.
Consider Getting a Loan
Personal, business and property loans may be available to help you rebuild. While this should be a last resort, it can keep your business running, and help you avoid filing for bankruptcy.
How Natural Disasters Affect your Bankruptcy Case
Many Americans this year have found themselves amidst disaster in the middle of their bankruptcy case. Often, their plan may fail, or at least will need major readjustment.
What may happen:
- The bankruptcy trustee may waive payments for a couple months
- The bankruptcy plan may need adjusting
- Damaged assets involved in the case may be surrendered
- An insurance check received may be held by the bank until certain requirements are met
If you are impacted by a natural disaster, whether you have filed for bankruptcy or not, getting professional help from a bankruptcy attorney is always a good idea. He or she can help you determine eligibility, and the best course of action to recover as quickly as possible.
“What will I do about a car?”
You likely believe that once you declare bankruptcy, you will have a hard time qualifying for an automobile loan. Our eBook with walk you through everything you need to know about buying a car during and after bankruptcy. Learn about your options so you can make the best decision for your circumstances.
Automotive Fresh Start Center, LLC is NOT a debt relief agency, as defined in section 101(12A) of the Bankruptcy Code. We do not provide bankruptcy assistance. The articles, videos, images, digital products, and other content maintained on this site as well as the opinions voiced in this material are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. No information on this site constitutes legal or financial advice and should not take the place of consulting with a licensed bankruptcy attorney, debt relief agency, or certified financial advisor.