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Quinn: Don't Wait to Go Bankrupt

It's an embarrassment, but it offers a 'fresh start'

By Matt Cantor, Newser Staff

Posted Jan 5, 2009 11:25 AM CST

(Newser) – 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.

[Images (4)]

[Quotes (1)]

Bankruptcy may be embarrassing--but in these economic times, it may be the best choice. (Shutterstock)

Jane Bryant Quinn drops her "good-girl reputation" to recommend bankruptcy to some. (Shutterstock)

In this March 15, 2008 file photo, a realtor's sign is seen on the lawn of a foreclosed home in Egg Harbor Township, NJ. (AP Photo/Mel Evans, file)

A sign showing a foreclosed house is seen in Glendale, Calif. is seen in this August 20, 2007 file photo. (AP Photo/Kevork Djansezian, file)

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Normally I'd say suck it up, cut spending and repay your consumer debt. But that's not always possible, especially with an economic tsunami rolling over your home, job and health insurance. - Jane Bryant Quinn

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Quinn: Don't Wait to Go Bankrupt