Should You File Bankruptcy After a Major Financial Loss?
If you face a serious financial loss, you may be wondering what you can do and whether you need to file bankruptcy. Fortunately, you’re not alone. Our Memphis attorneys have helped hundreds of people in your situation, and we’re prepared to help you every step of the way if you need it.
Here are three things to keep in mind when going through a sudden financial loss:
One: You Aren’t the Only One
When you’re in the middle of a traumatic financial event, it’s easy to feel like the world is caving in. It can be an extremely lonely experience—made worse if you feel shame or embarrassment about the situation.
But keep in mind that mega millionaires and even billionaires have businesses go bankrupt. Some very rich people have lost nearly everything in a day.
Famous examples include:
- losing huge investments in crypto in 2022
- watching a fraudulent company take your retirement, a la Bernie Madoff or Enron
- betting big on a new company that collapses
- identity theft
- and more
But for us normal people, it can look like job loss, sudden medical emergency, and other life changes that throw our finances for a loop.
In situations like this, we need our communities more than ever. If you feel isolated, it’s worth it to seek out religious or social groups to talk with and get a perspective. You can speak with any of these Memphis assistance programs for financial help in the short term. And of course our office is available if you have questions about your legal options.
Two: The System Hits Some People Harder Than Others
It’s no secret the world treats some people better than others; and some people’s wealth protects them even in massive financial loss. Losing your income means a lot more to a family living off a minimum wage income, for example, than it means to someone with family wealth.
When a billionaire’s business fails, they typically can protect themselves from the fallout by keeping the debt in their companies. Their families may not even notice a difference.
For the rest of us, the circumstances may feel truly dire. If so, consider the following steps:
- First, when our income changes, we have to look carefully at our budgets. That’s usually the first place to start: how can you cut back?
- Next, you should familiarize yourself with any aid organizations, both local and federal, to help you get back on your feet.
- Lastly, you should consider how the legal system might be able to help you.
Three: You Do Have Options
Congress designed bankruptcy as a way to help people recover from sudden, traumatic financial loss. Not everyone needs to file bankruptcy, and not everyone qualifies. But for some people, it can make an enormous difference.
Bankruptcy can protect your assets so a sudden loss doesn’t mean you lose your home or car. It can help with credit card debts or medical debts you can no longer pay. And it gives you a fresh start, which means the world if you weren’t expecting a major financial event in the first place and just need a minute to catch your breath.
Our team has worked with people in your shoes. We offer a compassionate, experienced shoulder to help you figure out whether this option might be right for you.
The conversation is free. To get started, call us at 901-327-2100 or fill out the form on this page.