In another article SHOULD I FILE BANKRUPTCY?
I said your decision is a personal one but should be based on correct facts and options.
A lot of folks realize they should file Bankruptcy (either a Chapter 7 or a Chapter 13) but are hesitant. They are fearful of life after bankruptcy, because they have listened to misinformation and myths (I will never be able to buy a house, a car, or get any type of credit for many years, if ever).
FEAR AND GUILT
Let it go. Millions of American individuals and corporations have filed bankruptcy and continue to do just fine. Continental Airlines filed bankruptcy three (3) times. It is doing just fine. General Motors filed bankruptcy and is selling cars at record levels. Donald Trump has filed four (4) corporate bankruptcies: he is doing just fine and even thinks he should be President.
The guilt and fear of enduring unbearable financial debt and still avoiding bankruptcy often causes emotional and physical distress and even illness and even Divorce. I have been told countless times by clients that the decision to file bankruptcy has lifted a heavy weight off their shoulders.
AFTER BANKRUPTCY
- After filing Bankruptcy you must establish and stick to a realistic budget. You only have so much income and you have necessary monthly expenses.
- Get a secured credit card. Charge small amounts and immediately repay the balance. If you properly maintain payments you likely will receive a slew of credit card offers within a year of filing a bankruptcy. However, that doesn’t mean you should accept all of the offers.
- Open a checking account and a saving account, if you don’t have one or the other. Try to put something every pay day into the savings account even if it be $5.00. Don’t overdraw your checking account.
- Order your free credit reports.
- Some believe that you can’t ever buy a home. Wrong. We have clients who are able to get a mortgage while in Chapter 13 or shortly thereafter. FHA loans are available two (2) years after a Chapter 7 case is completed.
- After a Chapter 7 your credit score will likely go up: sometimes by 150 points. After six (6) months some credit scores actually sky rocket into the 700s.
- There are many car dealers who sell and finance cars for folks who have been in bankruptcy. Just be careful. Set your sights on a modestly priced car that you can afford. There are many tools available on the internet to help you determine what you should pay for a particular car. Do your homework so that you can make the best deal possible for yourself.
PERSONAL OPINION
There is an old movie: “It’s a Wonderful Life” starring Jimmy Stewart and Donna Reed. Jimmy Stewart runs a small banking operation dedicated to serving his community. Lionel Barrymore owns the big bank in town trying to take over the town. He, of course, is the villain and is unscrupulous.
Today the big banks, credit card companies, many credit unions, finance companies and Pay Day Loan companies are operated by “Lionel Barrymores.”
This huge financial institutions squeeze their customers and deposits until they bleed. They burn the midnight oil to figure out new charges and fees; how to take houses, and increase interest rates when anyone gets into trouble. The Big Money people look for high risk, high return investments-but they use your money. If they are successful they get rich and leave nothing for you. If they lose the customers, depositors, and the taxpayers lose while they still get rich.
When you ask them why they engage in practices that hurt people they merely reply that “it’s not personal; it just business.” They operate without a conscience with no regard for hard working Americans.
So if you have money problems take the same attitude: it is not personal; it’s business. Bankruptcy is a right that the founding fathers put in the Constitution.
Without emotion, assess what is best for you and for your family.
If filing Bankruptcy is best for you and your family, you should do so without guilt. Remember that they would do the same to you without a second thought.
Our law firm has helped thousands of good people like you to get back on their feet financially.