bankruptcy blogIf you, like millions of other Americans, are currently struggling to meet ends meet due to debt, you should consider bankruptcy. Bankruptcy allows you to reorganize or liquidate your debts and start with a clean slate. Making sure you file at the right time maximizes that amount of debt you will discharge in your bankruptcy while protecting your assets from collection by your creditors. Even if you need to wait to file, you can consult an attorney now so your case is prepared to be filed the instant you are ready.

Americans have been filing for unemployment in unprecedented numbers, over 30 million since the start of the pandemic. With so many people losing their income, a few methods of paying the bills during financial crisis seem to arise.

Before withdrawing from any of your retirement accounts, you should consult with an attorney. The Coronavirus Aid, Relief and Economic Security (CARES) Act provides tax benefits for those who withdraw from their retirement accounts and are able to repay it within 3 years. If you are considered you won’t be able to repay into the account, or if you will end up filing bankruptcy down the line anyway, withdrawing from your retirement account can be a waste. Most retirement accounts are protected in bankruptcy.

Another way people make ends meet during financial hardship is by selling their possessions. A common misconception about bankruptcy is that you must have no assets, or surrender your assets if you want to file. Check with an attorney before selling any of your assets, as they may fall under one of your state’s exemptions, meaning you can keep it in a bankruptcy.

If you are struggling financially, your first instinct is to let as much cash as possible, including your stimulus check, accumulate in your bank account. Keep in mind that if you file for bankruptcy, your bank accounts will need to be under a certain amount on the day that you file.

If you are considering withdrawing from a retirement account or selling your belongings, we can help. You don’t need to wait for the stay-at-home order to be lifted to consult an experienced bankruptcy attorney. Our office is still offering free phone consultations so you can discuss your bankruptcy options without breaking quarantine. Don’t wait until it’s too late- call today!  Our Phoenix Bankruptcy Lawyers are at the ready with a variety of debt relief options available to you.