Bankruptcy Options by Attorney James Mullally

Sometimes the decision to seek relief from the bankruptcy court is made for you, despite your efforts to avoid such an earth-shattering ordeal, by the fact your creditors have all started coming at you from many directions. But sometimes, having a conversation about your financial situation before it becomes critical and no longer stays within your control, is extremely advantageous for you. Pre-bankruptcy planning can be vital for you, as such planning will maximize the use of your exemptions and can allow you a decent stake going forward, allowing you to continue with some of your personal plans for the future.

We have often seen a debtor come to us, facing a hoard of creditors, having borrowed against retirement savings, pensions and other ERISA-type funds, depleting these assets entirely. Such savings accounts would not normally be lost to creditors. Someone facing retirement, or retraining for a career change, cannot afford to start all over from the beginning with retirement funding. Almost all retirement funds, IRAs and the like survive bankruptcy ! Why throw your life savings at a losing proposition such as credit card debt, and jeopardize your future or your retirement because of a bad economy and a false hope it will all come back to you quickly. A dose of reality here: get out of debt earlier rather than later. Buying time now, in hopes of a quick recovery, will cost you time later, when you can least afford it.

There are social services available for debt counseling, and such counseling is required for every debtor entering the bankruptcy system. Get their advice now, while you can still plan. Direct the use of your assets without being forced to by creditors. You should also seek assistance from a bankruptcy practitioner early in the process, so you will know your legal options. Once you learn all of your options, you may be surprised to discover the strategic timing of a bankruptcy discharge was your best weapon all along.