According the Wall Street Journal, more people are taking on multiple part-time jobs and gigs to make up their lost wages.  Ken Hall, for example, took on several part-time positions and bartending on the side.  Handling one job can be stressful, but some are actually enjoying a new lifestyle that is absent the usual office politics.  Regardless, makings ends meat on your own is stressful and scary.  Despite their best efforts, some are still having difficulty making the mortgage and paying all the credit cards on time.  To cope, many are tapping every possible cash asset and savings source to make the minimum payments.  When you’re financially stressed and you feel you’re down to your last options, it is extremely tempting to take a slash and burn approach to debt resolution:  sell everything of value and deplete every other source of cash.  Essentially, do anything but file bankruptcy.

One of the worst pre-filing mistakes is not talking to a bankruptcy attorney.  If you have a large debt burden, talk to a qualified bankruptcy attorney who can explain the advantages and disadvantages of different debt management techniques.  They can help you head off problems before they backfire. Another major pre-filing mistake is liquidating the tools of your trade, especially in this economy.  Liquidation might make sense at first blush—pay everything off and then starting over.  But the question then becomes, what do you start over with.  With the slow rebound in the job market, you may be your best opportunity for employment.  If you liquidate your tools, you won’t have the items you need to make money.  Also, make sure that your bankruptcy attorney knows your profession and the tools that you need for that profession.  Your bankruptcy attorney can then work with you through the bankruptcy process to resolve your debt issues, improve your cash flow, and help you keep your trade tools.  Tools of the trade are protected during the bankruptcy process.  What is considered a “tool of the trade” depends on your occupation.  For example, a transcriptionist needs word processing equipment.  Mechanics need shop tools.  A promoter might need power point equipment.  Don’t be stuck in the mind set that “tools of the trade” only apply to certain occupations.  Protecting one of your last avenues of livelihood is an extremely important goal during the bankruptcy process, so don’t neglect identifying what items you need towards your occupation.

This is a rough economy.  Some analysts are dreading and predicting double digit unemployment by next year.  Fortunately, there are still options and opportunities available for you get back on your feet.  Contact a bankruptcy attorney in your area today to learn which type of bankruptcy is best for your financial situation.