Before you decide to file for bankruptcy protection, let your home go back to the bank, or cash in your savings or investment accounts you should consult with a Naperville CPA to make sure everything possible is being done to protect your assets. The easy way out may not always be the best way out.
The economy is having a horrible effect on the finances of millions of people across the United States. Homes are going into foreclosure, 401s are disappearing, stocks and investments are dropping like rocks, jobs are being eliminated and wages are being cut. And it's effecting everyone, not just the little guy.
While filing for bankruptcy protection may seem like the easiest solution it's not necessarily the best. For one thing, the bankruptcy laws have changed over the last few years and it's not as easy to qualify for Chapter 7 as it used to be. And if you file and can't qualify, then you'll be forced to proceed to Chapter 11 which means the court will order you take part in debt counseling. After that, if you miss even one payment your creditors are allowed to come after you again with both guns blazing.
Filing for bankruptcy or allowing your home to go into foreclosure could have long term devastating effects on your credit rating and your entire financial future and wiping out savings or investments could end up losing you even more money in the long run. Consult with a Naperville CPA before you make any major financial decisions and make sure your assets are protected.
Welcome to the blog of Susan S. Lewis, Ltd. a Naperville Accounting Firm providing CPA, tax preparation, bookkeeping, audits, Quickbooks, strategic business planning and payroll processing assistance.
Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order (there is the possibility that in some cases the bankruptcy discharge period will be less than one year). Although bankruptcy has a bad stigma and is publicly advertised, it should always be considered when dealing with individual insolvency cases.
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