If it feels like the days till payday just keep multiplying or if you are struggling to pay your monthly obligations, you may be tempted to tap your retirement savings to alleviate your financial hardship. Before making that withdrawal, take a few moments to evaluate whether this is the right move for you.
1. Consider the Penalties
Unfortunately, if you cash in your retirement account before you are 59.5, the amount you actually get is significantly less than the balance that you have right now.
If you have decided to file for bankruptcy, you may be wondering if you can include any legal fees or attorney's fees in your bankruptcy discharge. While there are some circumstances where it may be possible to do this, it is not recommended. However, if you know you are so far down and out financially that there is no alternative but to include these debts in your bankruptcy, here are a few things you should know about what you can and cannot include.
Often, it's a far better prospect to avoid bankruptcy if possible. Some people feel as if bankruptcy represents the only answer to their financial problems, but it's possible to get beyond those problems on your own. At the very least, it's worth trying a few of these things to see if they can help.
1. Do Some Research On the Subject
There are many, many resources out there for people just like you.
Depending on your financial situation, filing for bankruptcy could be the best move for you. After making the decision to file, you need to determine exactly when you should. The timing of your bankruptcy could influence how well the process goes and whether or not you get the maximum benefits from it.
Why Should You File Now?
The most important reason to file now is that when your documentation is filed, an automatic stay is put into place.
There are two main types of bankruptcy filings you can use if you need major debt relief, and a lot of people choose Chapter 7 if they are eligible for it. Chapter 7 is a good option because it wipes out debts you have, and you will then no longer be responsible for them. The downside is that you can lose some of the assets you have; however, there is something called reaffirmation of debts in Chapter 7, and this could help you keep some of the valuable things you own.
