Issues to Consider When Filing for Bankruptcy

 Posted on April 08, 2021 in Bankruptcy

If you are struggling financially, you may be wondering whether or not filing for bankruptcy is the right solution for your situation. While you are considering that option, there are steps you can take to help protect your assets from creditors. The following is a brief overview of those steps. For more specific information about your situation, consider speaking with a Fort Lauderdale bankruptcy attorney from Elliot Legal Group.

Bank Accounts and Credit Cards

Many of our clients find that debt can be a vicious cycle. Borrowing money creates debt and then situations arise that force people to have to borrow more money to try to get ahead of the debt. The more you borrow (or charge on credit cards), the worse your financial situation gets, and creditors are now calling on a weekly basis looking for their money.

If you are at the point where you are seriously thinking about bankruptcy, you want to stop borrowing money, whether through lines of credit or credit cards. Do not purchase any large ticket items – such as a car or jewelry – or otherwise try to run up credit cards any more than they are right now.

If you have money in a bank that you owe money to, financial planners recommend transferring those funds to another bank that you do not owe any money to. This is because legally, the bank is allowed to seize funds in your account if you cannot keep up with your payments. What you do not want to do, however, is to transfer any funds into anyone else’s name in an attempt to hide those funds.

Retirement Accounts

Funds in retirement accounts that qualify under the Employee Retirement Income Security Act (ERISA) are protected from creditors so you can continue to make your usual deposit amounts. In order for plans to qualify under ERISA, they must be set up and maintained by your employer or a separate organization. It must also comply with all federal rules regarding funding, vesting, and reports to participants of the plan.

Factors That May Speed Up Your Decision

Although it is always a good idea to take your time and not rush into making the decision to file for bankruptcy, there are circumstances where you do not want to delay at least speaking with a bankruptcy attorney:

• If you are being threatened with wage garnishment by one or more creditors.
• If your mortgage holder is threatening to or has already begun the foreclosure process.
• If your landlord is threatening to or has already begun the eviction process.
• If the holder of your vehicle loan is threatening to or already has repossessed your vehicle.
• If a creditor has filed legal action against you in an attempt to collect the debt.

Let a Broward County Bankruptcy Attorney Help

Filing for bankruptcy is never an easy decision but having an experienced and dedicated Fort Lauderdale bankruptcy attorney guiding you through a somewhat complex legal process can make all the difference in helping you obtain a fresh financial start. Call Elliot Legal Group today at 754-332-2101 to discuss what type of bankruptcy could be the right choice for your situation.

Source:

https://www.dol.gov/general/topic/retirement/erisa