The One Thing I Really Want Bankruptcy Clients To Do Is …
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Mar 12, 2008 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Protection, Featured, General Bankruptcy Information, North Carolina, Role Of The Lawyer
The one thing I really want bankruptcy clients to do is to seek help from a bankruptcy lawyer as soon as they can. Please! Stop me from repeating the following line: “I wish you had come to see me earlier because I could have saved you from doing ________.”
I certainly understand why people don’t want to file for bankruptcy. It isn’t high on anyone’s list of things to do, and I am sure you won’t find it on anyone’s bucket list, but for some people it is a really good option to consider. If it is a good option, the sooner you learn about it the better off you will be. At the very least, talking to a lawyer can prevent you from making some really bad mistakes. Mistakes like dragging your family into your financial problems, using up your savings and retirement, putting your home on the line, and getting much deeper into debt.
Going to see a good lawyer to discuss your options doesn’t mean you are going to file for bankruptcy. It means that you are going to learn if bankruptcy is, or isn’t, an option for you to consider.
If you want to negotiate with creditors, you need to know what they can do to you and what you can do to protect yourself. You need to know what property you can protect and what property your creditors can’t touch.
You need to give the lawyer a chance to discuss bankruptcy and any non-bankruptcy alternatives like workouts, debt management programs, or settlements. Find out what property you should not risk, and run by any ideas you might have to see if the lawyer has a reason to counsel you not to try that approach.
Make it easier for me. If I have to keep saying “I wish you had come to see me sooner,” at least let me follow it by “but at least you didn’t make any big mistakes while trying to avoid bankruptcy.”
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Jonathan Ginsberg, Atlanta Bankruptcy Attorney | Mar 13, 2008 | Reply
#1 on my list of things that I wish my clients would not do - do NOT cash out your 401(k) or retirement plan. In Georgia, ERISA protected retirement plans are exempt (protected) assets. I can’t tell you how many times I meet with a client who cashed out his 401(k) within the last 6 months. What a waste.