When Is the Right Time to Be Thinking About Bankruptcy?

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When Is the Right Time to Be Thinking About Bankruptcy?

Sometimes the best offense is a good defense, even when it comes to finances. If you have been hit hard by the economic upheaval of the coronavirus, filing for bankruptcy may be your best option.

At a time when thousands are already struggling with historic stressors due to the uncertainty caused by the pandemic, it may be that bankruptcy could relieve the pressures you find yourself facing.

At What Point Should I Start Thinking About Bankruptcy?

While you may have been told that you should seek bankruptcy only as a last resort, if you suspect that you may be unable to keep up with your debts, consulting a bankruptcy attorney is a smart move.

This doesn’t mean you need to file but rather that you will know your options for the future better than someone who hasn’t considered bankruptcy. Having an expert weigh in on your situation (for free!) may provide you with the guidance and information you need to make the best decision for you before you feel like the decision makes itself.

Should I Dip Into My Retirement?

While it may be tempting to turn to your retirement fund to erase debt, especially with the recent coronavirus hardship withdrawal options, this can be a poor choice. Commonly, retirement funds are protected from creditors, meaning if you use such funds to pay off debts and then still need to file for bankruptcy, you’ve lost your retirement money on debts that ended up being erased.

Should I Start Saving Up?

It is important to have a cash safety net, but once money is in your bank account, creditors can access it, so try not to let it pile up. A bankruptcy attorney can help you understand the best options for protecting your assets, such as a Roth IRA, which can help you maintain your money without the fear of seizure.

Should I Sell My Things?

It can be tempting to start raiding the closet for items to sell when you face financial hardship. However, selling your possessions may be better left for later if you see bankruptcy at all in your future. In some cases, bankruptcy trustees could sue the buyer to get the item back, or you may end up not even needing to sell the items. Waiting to sell also means you could put them up for sale after bankruptcy to help jumpstart your wallet and stay on top of bills.

Sawin & SheaIndianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you.

The Indiana bankruptcy attorneys at Sawin, Shea & Steinkamp can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483, or send an email for a free consultation. We are ready to help.

 

By |2020-09-04T10:57:38-04:00August 31st, 2020|Bankruptcy Basics, Bankruptcy Law|0 Comments

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