Over the last generation, private employer-sponsored retirement plans have replaced traditional pension benefits programs. This was fine while the going was good and the economy prospering.  The biggest advantage of the plans was that they were so easy – the contribution was deducted from the salary, so not only did people not miss the deduction, they had to do nothing themselves. The problem is that with things so automatic, people did not ever think about what was going on with the money they placed in these plans. Everyone presumed that it would magically appear upon retirement to take care of their post-career days.

Unfortunately, this is the real world and there is no room for magic. The banking and stock market collapse of the last few months has caused huge erosion in the values of 401(K) plans and other retirement funds. People, even in up market areas like New York’s Nassau and Suffolk counties are suddenly finding themselves bereft of any form of financial security for their post employment life. While younger workers are actively looking at other savings and investment options, those closer to retirement have little time to find a viable alternative that will allow for adequate resources to accumulate by the time they retire.

As a result bankruptcy and foreclosure have become major concerns. These are frightening terms for most people. Rather than bury our heads in the sand, it is better to face up to the facts and find solutions and remedies to the ills that the loss of savings has caused. And the best way to do this is to contact a local bankruptcy lawyer. It is never too early to start protecting yourself from the consequences of the losses you have suffered through no fault of your own. Bankruptcy is not the end. It is merely a stage in our financial life and a good bankruptcy lawyer will be able to help you get over the hurdle with the minimum of difficulty and assist you in finding ways to repair the financial damage inflicted on you.

If loss of your savings or other impacts of the ongoing recession have caused you problems with your mortgage payments, contacting an experience foreclosure lawyer in your area is something you should not delay. Foreclosure is a complex issue and with the government implementing innovative programs to help people who are having mortgage problems. Seeking help from an expert may be able to help you to stop home foreclosure.

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Many people labor under a mistaken impression that bankruptcy means a person has lost everything. Far from it. Bankruptcy means that a person is having cash flow problems and is unable to repay their debts.

Bankruptcy law firms in Nassau County are reporting that people who are facing bankruptcy, and who are unaware of the governing laws often lose far more than they need to.  Bankruptcy is a complex issue, and now, with the recession making things even worse people are on edge about their cash flow and retirement funds.

Nassau bankruptcy lawyers, say that most people are unaware of the protections offered to them under bankruptcy laws. It is common for people facing bankruptcy to liquidate their 401(K) and other retirement savings in an effort to pay off creditors and prevent bankruptcy. What they do not realize is that they are doing themselves more harm than good by these actions. In most cases, these funds are not enough to pay off the outstanding debts, and the partial clearing of debts does not stop bankruptcy proceedings. Also, the sudden liquidation of the retirement funds places a needless tax burden on the debtor.

Retirement savings should not be liquidated in bankruptcy cases.  Most forms of retirement savings are not affected by bankruptcy since they are not considered to be part of the estate which is liable for paying the debt or are exempt from creditor claims.

Various laws passed over the last few years have also offered additional protection to those facing bankruptcy. The trouble is that people either do not know about them or are unable to grasp the intricacies and appreciate the amount of protection they are entitled.

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What caused our present financial crisis? Bad mortgages that turned sour, which were followed by a huge wave of foreclosures.

If you are one of those who have been badly affected by what has happened to our economy, it’s time to take inventory of your financial position. How safe are you and how strong are your long term resources? No one can say with any certainty when things will begin to improve and even when they do, how long it will take for us to get back to the levels of prosperity of years past. Maybe we should not reach those levels – at least not in the same form. Perhaps what we had was built on quicksand. It would be a mistake to repeat the same process all over again. And this does not apply only to banks and Wall Street. It applies to individuals too. It’s time to look at long-term security, no matter what the short term problems may be.

Suffolk County and other prosperous regions in and around New York are seeing a rise in the number of people who are contacting them. These people may not be in any immediate danger of either foreclosure or bankruptcy, but they are engaging in long term planning and are factoring in these possibilities, so that they are prepared for any eventualities.

Being realistic about the problem of foreclosures makes sense. Despite the government’s well-intentioned promises to find ways of protecting the homeowner, the realities are that nothing much is happening or can be expected to in the immediate future. For example –the Bush Administration’s Hope for Homeowners program promised last year to shield 400,000 families from foreclosure. The actual results as of last February were a mere 25.

Understanding bankruptcy and foreclosure process is critical to long term planning. Bankruptcy is not the end of the road – there’s quite a bit of protection for retirement and some other forms of savings. Getting the right advice well in advance and modifying financial plans to take into account various scenarios is the key to long-term financial security.

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Allen Stanford and Bernie Madoff - just two of the villains that the stock market collapse has shed the spotlight on. They are the high profile scammers, but there are a lot of smaller crooks running around desperately trying to hide from the spotlights. And the number of spotlights is growing every day. After Madoff and Stanford, people are taking a far greater interest in the savings and investments they took for granted for so long. The fact that so many have lost their savings and are facing bankruptcy and foreclosure is heart breaking. There needs to be an increase in awareness for everyone to monitor their investments more closely.

For far too long people have made investments and adopted the mentality “Okay, I’ve put in the money, now let someone else worry about growing it.” It doesn’t always work that way. It’s your money and while you can follow the advice of others and allow them to use and expand the wealth you have trusted to them, autopilot does not exist in the investment world. People who misuse your money and lose it are guilty of criminal theft. But those who sat back and never took an interest in what was being done with their money may be guilty of being negligent.

Many areas are reporting the amount of people at risk of losing their homes along with their savings have grown exponentially. Bankruptcy is no longer something that happens to other people; it’s a reality that is staring many in the face.

The good news is that those who are being pro active and seeking professional legal advice, are taking steps to protect themselves and their families from the unpleasant future that may be waiting. Foreclosure and bankruptcy are complex subjects that do not necessarily mean financial ruin. There is a great deal of protection available for those who are suffering financial problems.

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Speaking recently before the Senate Banking Committee, Federal Reserve Chairman Ben S. Bernanke presented a sobering view of the economy. Mr. Bernanke said if, and the key word here is IF, the actions of the new administration are successful in bringing back financial stability and restoring consumer confidence, 2010 may be the year of recovery.

Obviously he could not make any rash promises. The point of contention is that the rescue packages and stimulus plans are a great leap into the unknown. Everything sounds good in theory, but how it will actually work in practice is something that people can only predict, not guarantee. Even as Mr. Bernanke appeared before the Senate, reports of falling housing prices and collapsing consumer confidence kept getting worse.

New York seems to be one of the most affected states, with bankruptcies and foreclosures on the rise. Bankruptcy law firms in Long Island NY are receiving and ever growing number of calls from people looking for protection to help them retain what little they have left in the face of this disaster.

The fact remains that while all the long term plans for economic revival sound great, the average American family is not looking towards the next year. Rather, they are wondering how to survive the next month. Certainly, lower gas prices have helped and elevated levels of consumer spending have kept the economy afloat, for the most part. But foreclosures and bankruptcies continue to rise. Gas prices have maintained low price along with other day-to-day expenses. The logic is, money saved on day-to-day expenses should be used to pay off mortgages and other debt, but this does not seem to be happening. Perhaps this is because we, as a society, are very dependent upon credit.

With people caught between a rock (bankruptcy) and a hard place (foreclosure) it’s not easy to decide which way to go. And with no immediate resolution to our economic woes, unpleasant decisions need to be made and made soon.

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