Arizonans who have to seek protection from creditors in bankruptcy court soon will be able to hang on to more of what they own.

As we close out another year and look forward to a new and hopefully more prosperous one, it is a good time to take inventory on where we stand financially in order to better prepare for the year ahead.

If you are considering bankruptcy as an option to deal with mounting credit card debt, tax debt, or the possibility of foreclosure, you should realize that your bankruptcy case can be impacted by the decisions you make in the months and even years prior to filing your case.

Q: Dear Debt Adviser: I have so much debt that I have to juggle among my income, payday loans and taking what I put in my 401(k) each month to pay my bills. I am not behind, but I’m sick of juggling. Is bankruptcy my best option, or is there something else I can do? — William

John Blundell, the English writer and biographer of Margaret Thatcher, was asked what advice the Iron Lady would have had for today’s presidential candidates. She would have been concerned with mounting debt, he said, but her first priority would have been to avoid, at all costs, a government takeover of health care. She knew that once you have a government-run system, you can never get rid of it, no matter how ruinous it is.

John Blundell, the English writer and biographer of Margaret Thatcher, was asked what advice the Iron Lady would have had for today’s presidential candidates. She would have been concerned with mounting debt, he said, but her first priority would have been to avoid, at all costs, a government takeover of health care. She knew that once you have a government-run system, you can never get rid of it, no matter how ruinous it is.

It is a common occurrence for people to come to me for a bankruptcy consultation after having cashed out their entire retirement savings in order to pay bills, only to find that a bankruptcy is necessary anyway. Hindsight is 20/20, as they say. Most of those in that position wish they had left their retirement funds in tact and filed for bankruptcy earlier on.

Dear Debt Adviser: I may have to retire soon for health reasons. If I default on my unsecured credit card debt, can my Social Security benefits or pension be garnished? — David

It always amazes me how generous some people are when it comes to lending their name or credit to a friend or family member. I understand why it happens. It could be a business venture, cosigning on a car, or sometimes even a home.

It appears that the job market is taking a turn for the better. It may be turning very slowly, but it does seem to be improving. Where a few years ago I saw so many clients who had just lost jobs or closed businesses, I am now seeing clients who have become re-employed or are getting more side work and on their way to more stable self-employment.

Become aware, responsible citizens