Bankruptcy Aftermath: The Importance of Insurance After Your Phoenix Bankruptcy, Part I

As you emerge from your Phoenix bankruptcy and get your finances—as well as many other facets of your life—back on track, it is easy to feel like your plate is too full. In the early post-bankruptcy stages, most people are busy enough sticking to their new budget and obsessively paying off every little debt that accrues in their name.

Insurance: The Forgotten Safety Net

After your bankruptcy, it may feel like the best thing to do is throw yourself 100% towards establishing good spending habits. Focusing on new survival tactics does not leave much time for preventative measures, however, and it takes both to ensure that you are never again back in a situation that would require you to file for bankruptcy.

Think back to the months leading up to your bankruptcy petition. While many small things may have just eventually piled up beyond your control, odds are good that there was one incident that acted as a catalyst for the pileup. For many people, this comes in the form of an event that leads to a massive medical bill, and possibly the inability to continue working.

While worker’s compensation laws require employers to be financially responsible for workplace injuries and subsequent work absence, most illnesses and injuries are not work-related, so the responsibility of all bills and absences fall on the individual.

The importance of health insurance is not lost on most people, but many people forget the importance of disability insurance. While disability insurance payouts do not compare to your full salary, they can be a financial lifesaver and allow you to make ends meet if you are out of work for a short time. Remember—missing one bill payment is a slippery slope, and insuring against that could be invaluable.

It may seem counterintuitive to add to your monthly expenses, but if you can spare any amount of money to insure your health and finances in the event of a disability, it can offer you invaluable peace of mind. The Phoenix bankruptcy attorneys at Curry, Pearson & Wooten are available now to help you plan your life through all stages of bankruptcy—call us today to discuss your case at 602-258-1000.

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