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The truth is most people file bankruptcy about 4 months later than they should have. Most people struggle to keep their head above water, moving debts from one creditor to another, before they decide to file.
And it's fine to not want to file bankruptcy - but if you're struggling, come in and discuss your options. Even if now is not the time, there are steps you can take so if you do have to file, you're in the best position possible. |
Maximize ExemptionsExemptions are how you protect your assets, and are determine by California law. All too often, when struggling to stay afloat, people either liquidate assets that are protected, or convert protected assets into unconverted assets. The result is they leave their bankruptcy with less to help them get back on their feet than they could have.
The classic example is the person that liquidates his 401k to pay the bills. Qualified retirement savings are exceptionally well protected. For most people, they could file bankruptcy, discharge those debts, and walk out with their retirement savings completely intact. |
PreferencesA key concept in bankruptcy is fairness, and that a person can't favor one creditor over another. If you hate American Express and love Mastercard, too bad. Unfortunately, the same rule applies to your friends and family.
This manifests in the ability of a trustee to avoid (undo) preferential transfers. Too often, innocent transfers - selling a house to relative when you can't afford it - will raise concerns by a trustee and cause headache for both the buyer and seller. By consulting early, we can make sure that potential pitfalls are avoided or mitigated prior to filing bankruptcy. |
A Plan for SuccessA bankruptcy is a tool to help you succeed, and let you focus on the future.
A bankruptcy isn't always the best choice, and sometimes it's not the best choice right now. But to anyone struggling to pay the bills, is borrowing money to pay bills, or is burdened by heavy interest rates on vehicles or loans, it is worth investigating. |