We are living in very uncertain times. Where what seemed sure and certain only a few months ago now appears quite shaky and unsubstantial.
You've probably heard this before: You should have enough money set aside at any given point to cover at least three months of your bills. Six month's worth of income sitting in the bank, of course, would be better.
Think about why people file for bankruptcy, and what reasons come to mind first? Poor spending habits? Bad investments? Bad business decisions?
If you're deeply in debt, you may be planning to file bankruptcy. If you're like many people, you may simply be waiting for the holidays to pass so that you don't have to deal with the paperwork and finances until afterward.
There have been some big bankruptcies in the news lately, from Dean Foods (the nation's largest producer of dairy milk) to luxury New York retailers, like Barney's. However, there are plenty of other bankruptcies in the works, as well -- although they get a lot less fanfare because they involve many ordinary people who simply have extraordinary debts.
Are you pretty certain that your financial situation is unsustainable? Do you anticipate filing bankruptcy eventually?
Are you starting to get a little panicked inside every time you spot a tow truck in your rearview mirror? If you're behind on your car payments, you probably have good reason to be nervous. You never know when someone might be following you with an order for repossession in their pocket.
Wall Street has been a bit rocky lately -- and things may get rockier still for those who are heavily invested in the oil and gas industries.
Small businesses have a lot of competition out there, and that can make it hard to stay afloat. However, if your business runs into financial trouble, you don't necessarily have to shutter the doors and give up on your dream. Bankruptcy may be a solution that will allow you to get a fresh start and eventually get back on your feet.
If you own a business and you're about to go bankrupt, you know the wisdom of making strategic decisions so that you come out of the situation as financially intact as possible. But you could make a big mistake if you don't understand the rules about preferential transfers.