Four Reasons Preppers Should Declare Bankruptcy When Overwhelmed With Debt
Are you a prepper? Are you worried about an EMP disabling the grid or the government collapsing, or do you want to be ready just in case? Then, you need to take the prepper philosophy into every aspect of your life including your finances. If you are a prepper overwhelmed with credit card debt, bankruptcy may be the best option. Here are four reasons why:
1. You need to devote your money to prepping rather than credit card debt
High-interest credit card debt can take decades to pay off if you only pay the minimum payments. If you have extra money and you can get out of debt quickly, do it. However, if you can only spare the minimum monthly payments, it may be time to consider bankruptcy.
Once your credit card debts have been discharged in a bankruptcy, you don't have to make payments anymore. Instead, you can devote that extra cash to stockpiling food or to saving for a property. If you already have a property, you may want to consider bankruptcy to protect it.
2. Getting your debts discharged protects your assets
If you have debts that you are no longer paying, they may eventually become a liability to you. Debts can be sold to layers, or the original holder of the debt may opt to sue you for the debt. If you are sued, you become personally liable for the debt. Your wages may be garnished, or the courts may demand you sell your property to pay for your debts.
If you are worried about your debts becoming a liability to your assets, you need to take steps to get rid of your debts. If your debts are discharged through bankruptcy and if you pay them off through a debt settlement program, no one can ever try to force you to pay them.
4. Your primary home is protected in a bankruptcy
It is also important to note that your primary home is protected through a bankruptcy. If you have a lot of credit card debt due to money you spent as you were stockpiling food, building chicken coops or securing your home, you can declare bankruptcy on those revolving debts and still keep your home.
Obviously, you cannot run up the debt with the intention of declaring bankruptcy – that constitutes fraud. However, if you already have those debts lying around and you can't afford to pay them, you can try to get them discharged through bankruptcy, and if you do so, you can keep your home, your primary vehicle and your personal effects through the bankruptcy.
4. If you are debt free, you can focus on building real wealth
If you are debt free and you don't have to worry about sending any money to the banks each month, you can spend your money accruing real wealth. After the meltdown of society, paper cash is likely to be worthless, but you can use your cash to buy whatever you think is going to have the most worth in the future. Whether that's wheat, gold, corn, beads or something else, you can buy that after a bankruptcy instead of spending money on debt reduction.