Admitting that she’s risking her “good girl reputation,” Jane Bryant Quinn, one of the country’s most-trusted conservative voices in consumer financial journalism, is telling debtors in financial distress to throw in the towel in 2009 and declare bankruptcy. Quinn gave this unexpected advice in her regularly featured column titled The Case for Walking Away in the Jan. 12, 2009 issue of Newsweek.
Quinn has long been the last word in mainstream money talk. She’s been a contributor to Newsweek since 1978, writes a regular column for Good Housekeeping magazine and is the author of bestselling books such as her Smart and Simple Financial Strategies for Busy People.
Among the advice she shares:
“It’s a mistake to tap your retirement accounts to make minimum payments on monstrous bills. IRAs and 401(k)s are largely protected in bankruptcy, as is most of your child’s 529 college-savings account. This money is your future. Leave it alone and use credit cards for your necessities. Card issuers know that some of their customers will fail. That’s why they charge elephant fees.”
“Don’t try to preserve your house if you’re going broke. Stop making payments, stay there while foreclosure is underway, then move out and rent.”
Ms. Quinn discusses the humiliation often associated with filing for bankruptcy and points out that that the purpose of getting a “fresh start” is to stop self-blame and helplessness and give yourself a second chance.
Most people contemplating filing bankruptcy have exhausted all other legitimate options and are figuratively at the end of their rope. But filing for bankruptcy isn’t the end of the world – it’s a new beginning, and in this era of financial crisis, rising unemployment and decreasing house values, it may be the best option for you.
Filing for bankruptcy can give you the fresh start you need and can help you reestablish a healthy credit score sooner rather than later. When conservative financial advisers such as Jane Bryant Quinn recommend that consumers consider bankruptcy, it’s time to recognize that filing for bankruptcy has become an acceptable and reasonable way to deal with a personal financial crisis.
