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Bankruptcy Courts and UBI Programs Give You the Benefit of the Doubt About Your Future Spending

the Benefit of the Doubt

When you tell your family about your plans to file for bankruptcy protection, there is always that one family member who is convinced that you are so bad with money that, no matter how much debt relief you get from your bankruptcy case, you will just end up broke again. The good news is that you should not let the naysayers get in the way of your plans. Previous financial struggles are not a predictor of irresponsible spending. Yes, there are different trends in spending habits between people who have experienced financial hardship in the past and those who have not, but poverty and careless spending are not inextricably linked. People who get a free reset through a bankruptcy filing tend to rebuild their credit successfully, just as people who get a free reset through universal basic income (UBI) programs tend to spend the money wisely. Think of a bankruptcy filing as a chance to show your true colors with wise financial choices. The first step is to contact an Oakland Chapter 7 bankruptcy lawyer.

What Do Bankruptcy Protection and Universal Basic Income Have in Common?

Bankruptcy protection erases debt obligations, and universal basic income (UBI) gives you a certain amount of money each month for a set amount of time, no strings attached. In other words, they both provide financial relief. They also have plenty of detractors who can’t stand the thought of anyone other than themselves getting relief. A recent article in Business Insider describes the ways that beneficiaries of UBI programs in the United States and other countries spend the money that they get through the UBI program, and the results do not make for very good clickbait. It turns out that most people spend their UBI money on debt repayment and ordinary household bills. Less than 10 percent of the money goes to what even the most budget-conscious people would call splurges.

It stands to reason that people who file for bankruptcy similarly put their debt relief to good use. People who file for bankruptcy are in debt through no fault of their own and so are beneficiaries of UBI programs.

Not Everyone Has Access to a Universal Basic Income, but Everyone Has the Right to File for Bankruptcy

Most people do not have access to a UBI program, although the existing programs are so successful that they may expand in the future unless the objections of detractors are loud enough or convincing enough. Even now, though, everyone has the right to file for bankruptcy protection. The bankruptcy court can reject your petition if it is inaccurate or fraudulent or because your previous bankruptcy filing was too recent, but it cannot reject it on the grounds that you do not deserve debt relief. Your ex-spouse, your enemies, and the IRS cannot take away your right to debt relief.

Contact the Law Office of Melanie Tavare About Filing for Bankruptcy

A debt relief lawyer can help you file for bankruptcy and reset your finances. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.

Sources

https://www.businessinsider.com/how-people-spend-universal-basic-income-ubi-food-housing-transportation-2024-4

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