Contemplating the possibility of bankruptcy is not an uncommon thing for people to do. Now that the economic crisis is in full force, many Americans have lost their jobs and are now completely desperate to make ends meet. It is a sad fact, but it is still a fact. Many have already filed for bankruptcy, while some are on the verge of doing so. Bankruptcy can be ugly, but if you find yourself in this dark situation, remember to be a man and deal with problems properly so that you eventually rise above this and live normally again.
Fortunately, there are logical steps to help you recover during these difficult times. There are several types of bankruptcies, but only Chapter 7 will be discussed as it is most applicable to most people. Chapter 7 is the most popular form of filing for bankruptcy because there is a complete liquidation of most past assets and debts, with the exception of a few factors such as income tax and child support (if applicable). Once you file for Chapter 7, you are on your way to getting rid of your problems and rebuilding your finances. Here is a quick guide on how to do it.
Seek expert advice
There is so much emotional turmoil associated with this event in anyone’s life. You may feel lonely and weak. Getting back up would be difficult if you are not emotionally and mentally ready to do it. Fortunately, there are expert networks and support groups that can help you solve your problems. Debtors Anonymous, for example, provides full support to people with similar problems. Offers a 12-step program to help you address your bad habits and decisions, as well as provide advice and talks on getting your finances back in order. Simply put, there are people like you who are willing to help. You don’t have to go through all of this alone.
Learn discipline and rehabilitate
The downside to filing for bankruptcy is that all your assets will likely be confiscated and you will have a hard time accessing credit cards or other forms of credit for a long time. In other words, you will literally start from scratch. Relying on cash in your bank account and other sources of income is the only way to do it. However, when you look at the opposite end of the spectrum, you will realize that this may present the perfect opportunity to assess your bad habits and decisions when it comes to your finances. This is your chance to establish greater discipline and keep track of your spending patterns in a more organized and direct way.
Rebuild and never look back
In fact, filing for bankruptcy can be scary, but one of the worst things you can do is give up and hide for the rest of your life. Certainly there are emotional and psychological aspects to this situation, but life must go on. So it should. Remember that bankruptcy is only temporary. If you apply for a credit card and it wasn’t approved, don’t be embarrassed to try again. Credit card companies cannot ignore it forever. As long as you can show them that you can pay the money back, they will eventually give you the green light. One way to be on their good side is to provide a guarantee, that is if you can get one. Whatever the case, it is important that you are more determined than discouraged to get back up. It goes without saying, but once you file bankruptcy and have managed to get out of it, make a commitment to yourself and your loved ones and never do it again.