Can I Continue to Help My Family in the Philippines When I File Bankruptcy?

Filing for bankruptcy can feel like a daunting process, especially when you’re worried about the wellbeing of your loved ones abroad. A common concern among many individuals in the U.S who file bankruptcy is whether they can continue to support family members in the Philippines. The laws surrounding bankruptcy are often complex, hence it is important to consult with an experienced bankruptcy attorney. At Liviakis Law Firm, we assist you in understanding the bankruptcy implications without compromising the support of your loved ones.

Bankruptcy is a legal process designed to give debt-ridden individuals or businesses a chance to start anew by discharging certain debts. However, it is a common misconception that filing for bankruptcy strips an individual off their entire income or asserts control over all financial activities. This isn’t the case.

Typically, when you file for bankruptcy, it is your ‘disposable income’ that is primarily considered. Disposable income generally refers to the income left after subtracting essential expenses needed for maintaining a basic standard of living. Therefore, if helping your family in the Philippines is an integral part of your monthly outgoings deemed as necessary, then it is possible to continue helping.

That being said, this also largely depends on the chapter of bankruptcy you file under. Chapter 7, often referred to as ‘liquidation bankruptcy’, permits the elimination of most or all unsecured debts while retaining future income. In contrast, Chapter 13 involves a repayment plan to pay back all or some debts over time, and your disposable income plays a pivotal role in determining the repayment plan. Thus, it remains crucial to discuss your regular financial commitments with your bankruptcy attorney, ensuring accounting for your ongoing obligations.

Furthermore, the Bankruptcy Code allows ‘reasonable and necessary’ expenses, which may include remittances to dependents. Bankruptcy courts understand the cultural norm among Filipino Americans of supporting family back home and could consider these remittances as legitimate expenses, thus, not impacting your bankruptcy schedule. But, the decision ultimately rests in the hands of your trustee and the bankruptcy court interpreting your situation.

Overall, the point to remember is: bankruptcy laws serve to protect rather than deprive. Yet, given the complexity and intricacies involved, professional guidance is incredibly beneficial. At Liviakis Law Firm, we are committed to walk you through the bankruptcy process and help you make informed decisions while considering your specific context and responsibilities.

To continue helping your family in the Philippines amid bankruptcy, careful planning, honest communication, and professional legal assistance can make all the difference. If you would like to discuss your situation in detail, feel free to reach out to a bankruptcy lawyer helping Filipinos in Sacramento, CA. Find an experienced attorney that can guide you towards a fresh financial start without jeopardizing the support of your loved ones in the Philippines.