A recent article published by Kiplinger warns that “a wave of bankruptcies and foreclosures appears to be building.” The author says that the combination of covid, inflation, supply chain issues, and a workforce that is demanding more flexibility, has created a perfect storm.
The Hanson & Payne team has noticed the confluence of these events as well. We, however, are a bit more optimistic than the author about what the future holds. Wisconsinites, and Milwaukee area residents and businesses, in particular, are a resilient and resourceful bunch.
Time To Take Action?
For homeowners, interest rates will almost certainly increase in the near future. If a homeowner can refinance his or her mortgage to take advantage of the current low-interest rates, that course of action should be considered.
For consumers, accelerating the timing of any major purchases will make sense since the looming inflation will make the dollar worth less and less and make the effective cost of an item more expensive as time passes. Individuals should also consider exiting the stock market or minimizing their stock portfolios as soon as possible. Conversion of stock to cash is not a good strategy during a time when the value of the dollar will steadily decline. Conventional wisdom dictates that investment in precious metals, such as gold and silver, is a safe harbor. Thus, selling stock and buying gold and silver makes sense.
Business owners should analyze their businesses based on the assumption that the near future will bring high inflation, high interest rates, and a continuation of supply chain disruption. It is prudent to take steps to restructure the business in a way that will mitigate the damages if those future assumptions come to pass.
Whether you should follow this financial advice depends on your specific situation. Nobody can predict the future, and even authors in respected publications like Kiplinger can only speak in generalities. The same is true of sources giving out information on bankruptcy.
Generally Speaking, You Need To Know The Specifics
Whether or not a wave of bankruptcies is coming tells you little about whether you or your business is at risk of being pushed into bankruptcy. Talking through your finances with an experienced bankruptcy attorney like those at Hanson & Payne is the best way to figure out if bankruptcy is in your future.
You may also choose to file for bankruptcy proactively. Bankruptcy provides businesses an opportunity to retool and refocus. It can head off emerging issues before they become big problems by giving the filer much-needed flexibility.
If you are worried about your finances or have questions about bankruptcy, the Hanson & Payne team is here for you. We are Milwaukee-based attorneys who have decades of experience helping Wisconsin businesses and families secure their financial futures. Please contact us today to schedule a meeting.