Your new year should be a “fresh start”—and if that means filing for bankruptcy, so be it, writes Jane Bryant Quinn in Newsweek. “If you're reaching the end of your rope, don't try to hold on. Save what you can,” Quinn says. Many families try to fend off bankruptcy for too long and end up losing assets that could have helped them recharge, notes a law expert.
“The right time to go bankrupt is when you're financially stuck but still have assets to protect,” Quinn writes. Don’t dig into your retirement money or skimp on health: Those are your “future.” A bankruptcy may even help you keep your home, depending on its value. But if you have to let it go, let it go. “Foreclosures stay on your record for 7 years and bankruptcies for 10.” And all the while, you can be rebuilding your credit score.