Ask the average person whether or not they want to file for bankruptcy and chances are the response will be they’d rather avoid it. Some people even consider it the worst thing that can happen to them.
Unfortunately, this attitude toward bankruptcy not only makes people who do choose to file uncomfortable, it means a lot of people postpone filing in order to save their pride. And in nearly every case, the preservation of pride ends up costing their wallet a lot more than it should.
If you’ve visited a bankruptcy attorney for a consultation only to realize it’s something you should’ve done months ago, you aren’t alone. Most people wish they’d acted sooner and if you are in the process of drumming up the courage to schedule a consultation, there is no time like the present!
The key to a successful bankruptcy is to not deplete all of your assets prior to filing.
For starters, bankruptcy is not free. You’ll need some money (maybe even a few thousand dollars) to file bankruptcy. There is such a thing as being too poor to file for bankruptcy and you don’t want to end up in this position.
To learn more about the costs associated with bankruptcy, check out this post from Nolo.com.
Entering bankruptcy with some assets does not mean you are going to lose everything you have. A bankruptcy attorney can help you protect your assets, so there is no sense in waiting until your financial accounts are on empty before filing.
Avoiding bankruptcy can make a bad situation worse by:
- Costing you your 401k
- Costing you your personal savings account
- Causing you to lose your home or your car
- Doing nothing to eliminate debt – only keeps you barely afloat at best
Why Throw Money at a Problem that Will Never Get Solved?
Likewise, you don’t want to throw money away. Chances are you’ll be released from your obligation to pay some of the debts you’re trying to keep up with now, so why throw money at a debt you’re not going to owe once you file or after your bankruptcy is complete? This is especially true if you’re thinking about using retirement or other savings to pay the debts you owe.
Though every case is different, it’s possible for a bankruptcy attorney to protect your retirement savings, keep your personal savings, protect your home and other assets, and make it possible to start fresh and begin rebuilding your credit. Not to mention the sooner you file the more likely it is you’ll be able to afford the costs associated with bankruptcy.
Using Bankruptcy as a Tool to a Brighter Financial Future
Nobody wants to file for bankruptcy, but far more people need to realize it’s a tool that can help them repair their damaged financial situation and turn a desperate situation into one that is manageable.
For more information or to speak to someone about why now might be the best time for you to begin the bankruptcy process, contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a free consultation.