So you are looking for information about bankruptcy. People typically search for bankruptcy information out of inspiration or desperation. But nearly every time people are looking for bankruptcy information, it is at that moment they have realized their money problems have become stressful.
Bankruptcy Facts for Most Are Really Just Myths
I find it fascinating how much people assume about bankruptcy rather than know. I went through the same learning curve as well. When I went bankrupt in 1990, I didn’t know anything about bankruptcy other than it felt terrible, and I was in an awful spot.
What I didn’t realize at that time was how fundamental bankruptcy is for both consumers and companies. It’s even talked about in the U.S. Constitution.
Bankruptcy is the single most powerful tool people can use to get a fresh start and do better moving forward. And regardless of what you have heard, the overwhelming number of people who filed a Chapter 7 bankruptcy never file bankruptcy again. They used bankruptcy as a legal tool to reorganize their debt and pick themselves up.
Most people are afraid bankruptcy will ruin their credit, but the reality is people who file bankruptcy do better financially than those who don’t file.
It is also easy to rebuild credit after bankruptcy. I mean, like stupid easy. Fears about your credit should not cloud your decision to avoid bankruptcy.
If you have student loans , you’ve probably heard there is nothing that can be done about student loans in bankruptcy; that’s another myth.
Maybe you’ve heard if you file bankruptcy, you’ll lose your security clearance. Again, more assumptions and less reality. In fact, the military branches say it is less of a security risk for someone to file bankruptcy than linger in deep debt.
We assign so much emotional value to bankruptcy that it makes it a traumatic experience. Some people even say bankruptcy is immoral and against their religion. But maybe we should look at what the Bible actually says about bankruptcy.
Bankruptcy Can Be Better Understood if You Take a Few Minutes
The bottom line here is before you say bankruptcy is going to ruin your life and be the worst thing you’ve ever done, get the facts.
I would suggest you find a great bankruptcy attorney and go talk to them for free. Talk to them about your specific situation and what bankruptcy would mean for you.
And if you really want to gather facts rather than believe assumptions, then you should look at the long-term future cost of trying to repay your unaffordable debt now rather than getting a fresh start and getting back to retirement savings. Reacting to your immediate issue by launching into an unaffordable repayment plan can cost you millions in lost retirement income, and I doubt that’s really the goal you want to achieve.