Bankruptcy. Your Worst Case Scenario? Not Necessarily!
While we all want to pay back our debts, sometimes life gets in the way. Especially now, with the unprecedented effects of COVID-19, some of us find ourselves with very few options. My experience is that most people who are seeking bankruptcy protection did not set out to find themselves in a situation where bankruptcy was the best option. And sometimes, because of that or of the pride of previously paying back their debts in full- and on-time, people delay the consideration of bankruptcy until the very last second.
I would be kidding you if I said it was an easy decision to file and that Bankruptcy is for everyone. But, in troubled times I encourage clients to at least evaluate the option of bankruptcy as one of the alternatives they are considering, before it becomes their only option.
A well-timed bankruptcy can help keep your 401(k) or other retirement plan and the equity in your home intact. Further, while it is sometimes hard to imagine yourself on a sinking ship, bankruptcy is sometimes inevitable and by moving it forward in the process helps you keep some of what you have worked so hard to build.