Bankruptcy and Waiting Until It’s Too Late
Written by Myrtle Beach Bankruptcy Lawyer, Allen Jeffcoat
In my Myrtle Beach bankruptcy practice I often talk to clients who have been struggling with their finances for months or years. Eventually, they decide to file bankruptcy as a last resort. Although this is likely the answer for them, they have waited so long to plan for bankruptcy that they will miss many opportunities to save valuable assets for their future use and support.
For example, one Conway client struggled for many months to keep her credit card payments current, by drawing down and ultimately cashing in her retirement plan that she had spent years accumulating. She was dismayed to find out that, although her credit card debt would be wiped out in bankruptcy, she could have kept her entire retirement plan had she acted sooner.
Another Murrells Inlet client that was in the early stages of planning for bankruptcy was pleased to learn that his large retirement plans are safe from creditors, even as they make plans to give up many of their real estate investments gone bad and get ready to be free of millions of dollars of real estate debt.
Many Myrtle Beach area residents don’t know that funds in retirement plans (IRAs, 401(k)s, 403(b)s, pension plans and many others) are exempt from creditor claims and thus can be kept even in bankruptcy.
The second biggest mistake that I see my clients make is using equity lines on their homes to keep making payments on credit cards and other unsecured debt. Many folks don’t know that they can keep more than $50,000 in equity in their homes (more than $100,000 if married) protected from creditors, so using up exempt equity in their homes to pay debts that will be wiped out anyway–if they had only known.
If you have financial problems, don’t wait to see a bankruptcy lawyer. Get help immediately to learn about all your options.
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