Selling off everything to make ends meet

WARNING: Do Not Make This Mistake

I was listening to talk radio this morning and heard a particularly depressing story about a family that has been selling off everything it owns to try to make ends meet. Both of the parents have been unemployed for over a year and both have been aggressively looking for work. To keep up with their bills they have sold virtually all of the furniture in their house. They are sleeping on mattresses on the floor. They have sold off jewelry, antiques, musical instruments, cashed in insurance policies, and retirement accounts etc. all to keep up with their bills. Now there is nothing else to sell. They are scheduled to meet with a bankruptcy attorney this week as they do not know what else to do.

What I find so depressing about this story is that this family has sacrificed so many assets which the Court would have protected. Here in Indiana, this family could have kept $16,000.00 worth of personal property as well as their retirement accounts. Most likely their whole life insurance policies would have been protected as well. While they will still get the benefit of their debts being wiped out, they now do so without the bulk of the things they worked so hard to obtain over the years.

Yes, they are just things and they can be replaced but the reality is that they did not have to do this to themselves. They could have ended up in the exact same place with most of the items they sold still in their possession. I find people are routinely given inaccurate information about bankruptcy by their friends and family or so called experts on the Internet. This can lead them to make costly mistakes just like this family did. Do not do this to yourself. If you find yourself in financial trouble or even think you might be headed in that direction, it is well worth the time and money to sit down with a bankruptcy attorney to review your options. Knowledge is power...and in this day and age we all need whatever power we can hold get our hands.