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Don’t Wait Until You Hit Rock Bottom to File Bankruptcy
You don’t have to be penniless to file bankruptcy. You don’t have to have your back against the wall. And you don’t have to lose everything to get a financial fresh start. Don’t wait until you hit rock bottom to file bankruptcy.
Don’t deplete your savings trying to avoid bankruptcy
57 percent of Americans have less than $1,000 in savings, and 69 percent have less than $5,000. If you’re one of those who actually have a savings fund, don’t deplete it in an attempt to stave off bankruptcy. In most cases, savings funds can be protected in bankruptcy. If you give those funds away then wind up filing bankruptcy anyway, that’s money you’ve simply donated to creditors for no good reason. Payments to creditors within a year of a bankruptcy filing can also be “scratched back” by a bankruptcy trustee. Don’t surrender your savings.
Don’t empty your retirement accounts
Retirement accounts are long-term investments. In most cases, you should not tap retirement savings to pay short-term debts. Almost all types of retirement accounts can be exempted in bankruptcy, which means you will be able to keep those accounts. The U.S. Bankruptcy Code protects retirement accounts from liquidation, so in many cases it makes much more sense to file bankruptcy than it does to liquidate or borrow from retirement savings.
Don’t sell off your assets
Most of our bankruptcy clients keep all of their assets. All assets. Lee Legal emphasizes maximization of asset protection. So selling off assets when you should be filing bankruptcy usually means giving away property to creditors instead of keeping it for yourself. Protecting assets in bankruptcy does require foresight and expertise. If you have large, liquid assets or uncommon assets, talk to a lawyer as soon as you can because timelines are important in bankruptcy. Definitely disclose to counsel before (or after) you liquidate any property prior to filing.
Don’t lose hope
Bankruptcy is hope in the form of a financial fresh start. Using up or giving away or selling off everything you own is desperation, not hope. Instead, that’s the fast track to rock bottom. Sometimes, people hit rock bottom hard and fast, and those folks need help, too. Nevertheless, most people can see bankruptcy on the horizon well before they hit rock bottom. If you think that bankruptcy may be in your financial best interest at some point in your future, consider consulting an experienced bankruptcy attorney to explore exemption planning and asset protection before you even get close to hitting rock bottom.
Don’t wait until you hit rock bottom to file bankruptcy
When you emerge from bankruptcy you will want to have a savings cushion. You will want to have your retirement account. And you will be glad that you didn’t sell your property to pay creditors who will be discharged in bankruptcy, anyway. If you exhaust all of your assets before you file bankruptcy, your fresh start just won’t be as effective.
Once you hit rock bottom, there’s no digging any further. Don’t wait until you hit rock bottom to file bankruptcy. If you live in the Washington, D.C. area and are considering filing bankruptcy, call Lee Legal at (202) 448-5136.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
