Felons need to be prepared before they go to jail so that their families can receive financial support from savings and other financial instruments which felons deposit in the banks to support their families.
Felons face numerous challenges when they go to jail, one of the challenges is financial losses. Families require to meet their daily expenses; they can use these savings from the bank to meet their expenditure.
This article covers the following aspects to guide you for financial preparedness:
- A felon’s financial security before going to jail
- What can happen to your bills when you are in jail?
- The role prison plays in reducing your credit score
- What is the best way to deal with bills from prison?
- Course of Action
A Felon’s Financial Security Before Going to Jail
As a felon you are aware that you will go to jail soon and this can cause some serious financial problems to your family when you are away.
- Felons need to ensure your financial debt gets cleared before they go to jail.
- They must leave a substantial amount of income as a deposit to support their family while they are away.
- Felons can also leave a substantial amount of income and authorize their spouse or family member to pay off their financial debt in their absence.
- Before going to jail if felons reside in rental accommodation, ensure they pay their monthly credit card bills, phone bills, electricity bills, and internet bills.
- Felons should move out from the accommodation on rent.
- This will allow felons to save the remaining savings to support their family.
- If felons live in their own house they must leave substantial income for their family members, so that they can meet their daily expenditure without a hassle.
- If felons purchase any household items on Easy Monthly Installments (EMI) they must ensure their account has sufficient balance to deduct these installments.
- Otherwise, the household items will get returned to the store felons purchased from.
- If felons go to jail, their monthly expenditure doesn’t stop.
- Felons need to ensure that it doesn’t become a matter of concern for their family when you are away.
- Felons focus on spending the money they earn in criminal cases. This leads to the bills being unpaid.
What Happens to Your Bills When You Are in Jail?
- When felons are in jail the bills and monthly expenditures remain static and don’t get canceled on their own.
- Felons must ensure they cancel all basic expenditures to ensure they do not suffer financial losses and debt on their release.
The Role Prison Plays in Reducing Your Credit Score
Felons spend time in prison doesn’t reflect in their credit score. If a felon fails to pay his monthly credit card bill on time, this is a major factor that leads to reducing the credit score while felons serve their term in prison.
1 Felons must pay proper attention to their finances and avoid their account status from changing to delinquent.
2 A negative credit score harms the reputation of a felon in society.
3 Felons who face financial debts such as credit loans and other loans taken for years negatively impact their credit score.
4 Repossessions lead to slow credit debt.
5 No money means no financial reputation
6 If felons have a negative score for 7 years, a report of bankruptcy gets released.
7 Planning your financial stability secures your future and provides adequate financial support to your family members while you are away.
What Is the Best Way to Deal with Bills from Prison?
Felons do not have access to their accounts. They need to give written permission to someone from their family or friends to access their account. Felons can choose to open a joint account so that their spouse or family member can access the account and manage the saving.
1 Felons can open a financial trust and assign its responsibility to a financial professional.
2 The family of a felon can meet their monthly expenditure from the interest earned in trust.
3 Felons can convert their properties or other assets into money or gold to safeguard investments at the time of need.
4 Felons’ financial stability provides security to their families when felons serve their sentence in prison.
5 If felons declare bankruptcy, certain expenditures require financial attention. These are student loans, child support, court fees, restitution on your record after you declare yourself bankrupt.
The Course Of Action
Felons must exercise a simple and straightforward plan to manage finances and support their families. Felons can contact an attorney for legal advice. Upon release from prison, felons cannot guarantee they will earn the same amount of income before their conviction. Felons face a risk of identity because of getting involved in theft or fraud from family or friends.
A good financial plan protects the credit scoring of the felon and helps re-establishing connections with their families or friends. You should be consistent and systematic while paying your debt. Felons do not get described by past mistakes but they should have awareness about how to deal with bills when they are serving in jail.
Felons believe the loans and credit card payments get wiped if felons are in prison. The reality is these loans decrease the credit score of a felon and non-repayment leads to bankruptcy and other financial troubles in the future. It is a smart idea for felons to handover their financial responsibilities to a collection agency that manages the repayment of loans for felons till they complete their term in prison.
If repayment of loans is not exercised, you can land into serious trouble. On your release, all assets get repossessed by lenders of banks. Felons land in financial debt because of leading a criminal lifestyle. The financial debt gets accumulated because of activities such as gambling debts, financial obligations from a dishonest source, and loans from families.
Felons avoid reporting such activities to credit bureaus to protect their credit score for the long term. Make sure you plan well and secure the future of your family well in advance. This can help them survive in any situation.