The North Carolina Bankruptcy Information Blog

Well, it’s a new year. 2011. Time to put behind the hassles and headaches of what was and time to think about what will be. Especially in terms of your personal financial situation.

Despite what so many had predicted, 2010 wasn’t much of a recovery year for America. The stock market saw some gains for the second year in a row. However, the unemployment conditions didn’t respond accordingly, perhaps making the connection between Wall Street and Main Street a bit more obscure. A rising tide, as it were, might not raise all ships.

That being said, what kind of decisions are you going to make about your future?…

You’re in credit card debt, often with a double-digit interest rates that can balloon over time into a monthly amount more than even your car payment. You may have sold (or lost) your home, but without much equity to go around, you have downsized with little to show for it. You’ve minimized the amount you contribute to your future—retirement, savings, investments—in the hopes of having more to pay down mounting bills.

And what has it done for you? In many instances, debtors facing these same situations find themselves no better off than before they tried to buy themselves time to get out of debt.…

While many people consider it common knowledge, the last-minute fear before deciding to file bankruptcy could end up costing you even more come retirement. Turns out, that as the recession deepens, more people are looking toward their long-term savings for an influx of cash to help stay afloat.

Well, don’t ever be one of those people. Typically, what ends up happening is that you wind up without retirement money and still filing bankruptcy. We’ve seen it happen. And it’s hard to watch.

An article on USAToday.com pointed to figures that show a record number of people in the second quarter of this year used their retirement accounts to help stave off a financial problem.…

In the recent “Great Recession” more and more Baby Boomers were found to be delaying retirement in order to hold onto few and far-between jobs and hold tight to their incomes. But even in tough economic times some are weighing the pros and cons of calling it a day…and a career.

To help those close to retirement figure out whether now is the time in both age and budget, The Chicago Tribune has put together a list of questions to determine your next best steps. Answer affirmatively, retire away; but if most of the answers are “no,” consider taking a bit more time to firm up your finances and plan for a future unfettered with economic worry and woes—one way or another.…

Successfully coming out of bankruptcy is a financial rebirth. As you move on from your financial setbacks (and you will), you will be better prepared to build a healthy fiscal future. Part of that, or better stated, a huge part of that, will involve how you make decisions regarding money. It would be understandable, for example, to simply save everything in a conservative money market (savings) account or maybe drop a small bit of your monthly income into a 401k. Both options are solid and should be considered part of a comprehensive investment strategy.

So if bankruptcy has changed the way you handle money and it’s time for you to start moving forward building responsible, long-term wealth, consider the following investment tips:

1.…

So you’re drowning in debt and desperate for a way out. A friend or relative asks if you’ve considered a 401k loan. “They’re quick, simple to qualify for, and here’s the best part: you’re paying the interest to yourself.” Sounds like a brilliant solution, right? Why pay 25% interest to a credit card company when you could be paying 6% interest to yourself?

Stop. You want to think long and hard before you take out a 401k loan, especially if you’re already in debt.
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The most important thing to know is that, in bankruptcy, your retirement savings – 401k accounts, pensions, 403b accounts, traditional IRAs, Roth IRAs and even plans for small business owners and the self employed – are protected from your creditors.…

There comes a time when you realize bankruptcy is your best option. That moment is not always the easiest to determine but look for it right around the time you decide it’s safe to ride out the financial monsoon. Chances are, if you are chest-deep in the flood waters and still think you can swim to safety, it’s time you hope for a life raft.

It is quite easy for those within your social circle to paint a picture of social disenfranchisement and shame when you tell them that bankruptcy has become a reality. But ignore it. Do you seriously want to further endanger the well-being of your family because of something a not-very-understanding friend believes?…

Bankruptcy is a form of personal financial protection. Now, more than ever, the protections of bankruptcy can fully blanket your retirement accounts.

While retirement investments classified as employer-backed 401(k)s and 403(b)s have long been under the protection from bankruptcy of the Employee Retirement Income Security Act of 1974, the BAPCPA , or Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 added IRA assets as a protected investment class as well. This should offer those considering bankruptcy an added sense of security that your financial future is still very much intact.

Depending on your place of residence, you will utilize either your state’s protections or the federal protections under BAPCPA.…