Investment Insights

Poor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.

If your bills have piled up — medical costs, maxed-out credit cards, or the threat of foreclosure — filing for bankruptcy can feel like your only option. It can also feel like one more expense you can’t afford. But if you’re going to file, hiring a bankruptcy attorney is often the smartest money move you can make. Bankruptcy is federal, technical, and deadline-driven. A missed form or a missed meeting can delay your case or even get it dismissed. A good lawyer helps you pick the right type of bankruptcy, protect what you can keep and steer you through the paperwork and court calendar so you don’t make costly mistakes. Do you have to hire a lawyer? No. A lawyer is not required to file for bankruptcy. You have the right to “pro se” representation, meaning you’ll represent yourself during the court proceedings, and you can find plenty of resources that explain how to file for bankruptcy. But bankruptcy law is complicated. Judges, trustees and court clerks can’t give you legal advice, and bankruptcy requires accurate, timely filings plus court hearings you’ll want to be prepared for. Studies and reporting generally show that people who go it alone are less likely to get a full discharge than those who hire counsel. In short: you don’t have to hire an attorney, but you very likely should. What a bankruptcy lawyer actually does for you A bankruptcy lawyer will: Explain which chapter — usually Chapter 7 or Chapter 13 for most individuals — fits your situation and why. Advise whether you can keep your home, your car, or other property. Help you prepare and file the petition and the long list of required forms. Represent you at the 341 “meeting of creditors,” where a trustee questions you under oath. Missing that meeting can jeopardize your case. Enforce the automatic stay, the court order that generally stops most collection efforts as soon as you file. If a creditor ignores the stay, your lawyer can ask the court to sanction them. Draft and negotiate a Chapter 13 repayment plan if that’s your route, or handle issues that arise after filing. Where to look for a bankruptcy attorney Start with people and organizations that have your best interests in mind: Friends and family. Personal referrals give you a sense of how a lawyer treats clients and whether they get results. State and local bar referral services. These services can match you with attorneys who practice bankruptcy law in your area. National groups that focus on consumer bankruptcy. The National Association of Consumer Bankruptcy Attorneys (NACBA) and similar groups list members who focus on consumer bankruptcy. The American Bar Association and your state bar. Both let you search for bankruptcy specialists and check discipline records. Legal aid and pro bono clinics. If you can’t afford private counsel, see whether a legal aid program or bankruptcy clinic can help. (Many courts publish local pro bono lists.)How do you find a suitable attorney for your bankruptcy team? How to vet bankruptcy attorneys — what to ask and what matters Experience: Pick someone who handles lots of consumer bankruptcy cases, not a generalist who dabbles. Chapter 7 and Chapter 13 are the most common for individuals; attorneys who mostly do Chapter 11 (reorganization) usually work with businesses and complex cases, so they may not be the best fit for a typical consumer filing. Ask how many cases they file each year and what percentage are consumer bankruptcies. Firm size and fit: Large firms bring resources and depth; small firms often feel more personal and can be less expensive. Meet folks from firms of different sizes and judge who you trust and who answers your questions clearly. Fees and payment: Costs vary by state, by complexity, and by chapter. Many Chapter 7 lawyers expect payment before they file your petition; Chapter 13 fees are often rolled into your repayment plan. Ask exactly how and when the law firm expects to be paid, what’s included, and whether there are extra costs (like trustee fees or credit-counseling costs). Many reputable lawyers offer a free initial consultation — use it to interview several candidates. Communication and trust: You’ll need to be honest about your finances. Choose someone who explains things clearly, answers promptly, and gives realistic expectations. Bankruptcy is stressful; you want an attorney who’s a calm guide, not someone who talks over you. Red flags to watch for Too many clients, too little attention. If a firm seems rushed or can’t explain how much time your case will get, think twice. Pushy sales tactics. Reputable attorneys explain options and let you decide. They don’t pressure you into filing immediately or into unnecessary services. Unclear fee practices. If fee arrangements aren’t spelled out in writing, walk away. No willingness to meet or explain. Many bankruptcy lawyers offer a free consult; a strict “no free consult” policy isn’t always a deal breaker, but it’s reasonable to expect an affordable or free way to learn whether you qualify. Can a lawyer stop a foreclosure or repossession? Often filing for bankruptcy triggers an automatic stay, which generally halts most collection activity, including foreclosure and wage garnishment, at least temporarily. That doesn’t mean every problem disappears — and some creditors can ask the court to lift the stay — but an experienced lawyer can file emergency pleadings and help preserve your home while the court sorts things out. If you can’t afford a lawyer Don’t give up. Many courts maintain lists of free or low-cost legal aid providers. Local legal aid societies, law school clinics, and bankruptcy pro bono programs can sometimes provide full representation or limited help with forms and hearings. Even if you must represent yourself, get help with the initial paperwork so you don’t miss critical steps.

The article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.

Fewer than three months after the longest federal government shutdown in U.S. history, lawmakers are gridlocked again ahead of a Friday funding deadline to keep the government fully operational. Six of the 12 annual spending packages that fund federal agencies for the fiscal year have already been passed by Congress and signed into law by President Donald Trump. However, the remaining six bills are being fiercely debated in the U.S. Senate and are at risk of missing the Jan. 30 deadline, which would send the U.S. government into another partial shutdown. The stalled bills include appropriations for the departments of the Treasury, Health & Human Services, Education, Labor, State, War (formerly known as Defense), Homeland Security, Transportation, Housing & Urban Development and other agencies. The debate hinges on funding for the Department of Homeland Security, which includes U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, known as ICE. Following the ICE killing of Alex Pretti, 37, in Minnesota on Saturday, the appropriations bill stalled, with many lawmakers refusing to vote for any ICE funding. “I hate shutdowns,” Sen. Angus King, I-Maine, said during a CBS Face the Nation interview on Sunday. “But I can’t vote for a bill that includes ICE funding under these circumstances.” Because funding for the Department of Homeland Security is currently packaged together with several other departments, the debate over ICE funding could plunge the U.S. into another partial shutdown. “Any shutdown is a bad shutdown,” Andrew Lautz, a director of federal tax policy at the Bipartisan Policy Center, previously told Money. “Even if it’s a one-day shutdown.” While some agencies are already funded, many others — like the departments of the Treasury and Education — administer crucial programs that affect the finances of everyday Americans. Here are several ways a shutdown could affect your money. 1. Federal workers are furloughed and paid late Perhaps the most directly impacted group of people during a government shutdown is federal workers and contractors who have nothing to do with the political negotiations over spending. (Lawmakers still get paid during government shutdowns.) According to the Department of Labor, the federal government employs nearly 3 million non-military workers. On top of that are “hundreds of thousands of federal contractors whose businesses in large part depend on the federal government,” Lautz says. Many of these workers are once again at risk of being either furloughed or asked to show up to work without on-time pay. A 2019 law guarantees back pay for these workers when the shutdown ends, but they are forced to make do in the meantime with no clear timeline for their next payday. “One missed paycheck can be a missed payment on your car, a missed payment on your mortgage,” Lautz says. “It can mean going into credit card debt.” Given the size of the federal workforce, Lautz also notes that the missed paychecks could also have a ripple effect on the local economies with a high concentration of federal workers, given that they will likely have to curtail spending throughout the shutdown. A recent report from the nonpartisan Congressional Budget Office estimated that a partial government shutdown could result in up to $400 million of lost compensation per day for federal workers. 2. The IRS would suffer as tax season ramps up Tax season officially launched Monday, and the Trump administration has been touting potentially “gigantic” refunds this year. According to the Tax Foundation, refunds could be between $300 and $1,000 larger than normal due to a slew of tax code changes from President Donald Trump’s One Big Beautiful Bill Act. Because the Treasury Department is awaiting appropriations, the IRS is at risk of partially closing at a crucial time. A shutdown right at the beginning of tax season could decimate the agency’s ability to process tax returns and issue refunds in a timely manner. The IRS hasn’t released new details on how many workers it would furlough during a shutdown, but the agency had to send home about half of its workforce during the last one. 3. Travelers could see flight delays For travelers, the good news is that air traffic control and airport security continue during the shutdown, so wide-scale cancellations and delays should largely be avoided. “But that’s not to say there aren’t potential interruptions,” Lautz says. The Department of Transportation, which oversees the Transportation Security Administration, or TSA, is among the departments requiring appropriations. TSA agents and other airport workers are generally deemed essential and asked to show up — but without pay. Many may decide not to. During the recent shutdown, several airports reported major back-ups as federal workers called off. National parks and museums would not be affected by a potential shutdown this time because the Department of the Interior has been funded. 4. Government benefits might be disrupted (but not Social Security payments) Many federal benefits programs are affected during a government shutdown, but Lautz wants to make one thing clear: “Social Security benefits will continue to flow.” However, the actual administration of the program, including customer service and verification of eligibility, could be disrupted. The Social Security Administration’s latest shutdown plan says about 45,000 employees will stay on while 6,200 are furloughed. Social Security benefits are one example of “mandatory” government spending, meaning the government is obligated to pay out these benefits even during a shutdown. Medicare and Medicaid benefits are also mandatory. However, the agency’s shutdown plan says benefits verification and Medicare card replacement services may be put on hold. Temporary Assistance to Needy Families (aka welfare) and Section 8 housing assistance could also be affected since the administering departments require funding. SNAP benefits, which are mandatory spending via the Agriculture Department, are funded and are not likely to experience major delays. 5. The release of economic data may be held up Among the long list of agencies that are hobbled by a government shutdown are those that monitor and report on the economy, namely the Department of Labor’s Bureau of Labor Statistics. This