Lawyer Monthly - August 2024

retirement money before consulting an attorney waste their legal options. Exemption analysis should be done by a competent attorney. Some analysis is easy, but there are odd opportunities that may exist in some cases. While corporations do not receive exemptions, the terms of secured debt can often be negotiated. Restructuring payments over a longer time cycle is preferable to having a borrower fail completely. After financial issues develop, but while it is possible to make payments, that’s the time to see if a new payment structure can free up some cash flow. Take advantage of that time before resources to successfully reorganize and vaporize. Early consultation is always better! Should I at least try to pay back my creditors before filing for bankruptcy? No! TALK TO A BANKRUPTCY LAWYER 18 LAWYER MONTHLY AUGUST 2024 FIRST! Your creditors knew your options when they extended credit to you. Should you not have the same understanding? Ignorance can be expensive. Are there any other things that you definitely do not want to do before filing for bankruptcy? When some financial difficulty makes you think bankruptcy could be an option, see a lawyer who practices bankruptcy law. Find out how exemptions could work for you, as an individual. Sometimes spectacular results are possible. In the corporate world even where no exemptions are available, obtaining advice early on is also useful. As noted, time allows for negotiation. Time also allows for identification of what debts would flow through a corporation onto individuals. Obviously, this includes voluntarily guaranteed debt. No one likes to admit failure. Facing reality is often deferred. In my experience, early intervention allows a greater chance to recover.

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