The decision to file for bankruptcy is a major one, and undoubtedly, the impact of this decision can be felt in many areas of your life. Yet, at the same time, filing for bankruptcy does not mean your life stops. Life must continue as planned and might even include a vacation. Going on vacation just before or during a bankruptcy proceeding is not against the law, but there are specific considerations you have to keep in mind.

Time of Booking

When it comes to vacation during a bankruptcy process, one of the most important aspects involves when the trip was planned. As a general rule, if the trip was planned and paid for well before the filing, there should be few issues with the trip.

On the other hand, planning a trip and paying for a trip amid a bankruptcy filing is not advised. Remember, bankruptcy is meant to provide relief for individuals experiencing difficulties. Someone who can pay for a vacation may not fit into this category in the eyes of a judge. 

Trustee Verification

If the trip is already planned, keep in mind that it might be necessary to obtain verification from the trustee in charge of your claim. This verification is generally required whenever your travel plans take you out of the country. 

Since this form of bankruptcy filing depends on a repayment plan, the trustee will need to obtain the details of your trip and authorize the travel to ensure the agreement will be maintained. Your attorney will help you determine if you need verification for the trip and help guide you in obtaining this authorization.

New Expenses

Again, taking a vacation is allowed, but certain practices should be avoided. As previously stated, paying for a vacation after you have filed is not a good idea. However, even if the trip has been paid for, you should not introduce any new expenses in preparation for your trip.

Charging up your credit cards to purchase clothing, pay for excursions, or pay for items while on the trip should be avoided. Even if your bankruptcy had been approved, using your credit cards to add to your debt load could cause the process to be terminated. 

If you have a planned trip, be sure to speak with your attorney beforehand to understand the possible implications and any precautions you need to take. 

Contact a local bankruptcy attorney to learn more.