Live The Life You Deserve

I Never Thought I Would File Bankruptcy

Nobody plans to file bankruptcy. Similarly, nobody plans to get sick, or get into a car accident. We just do our best. Sometimes, bad things happen to good people. But it does not mean you are a loser simply because you need some help. You have worked hard and done your best. Even the government knows that people need help sometimes. That is why bankruptcy was created.

Bankruptcy is a social federal program, just like unemployment insurance, or social security. There is no shame in using government programs when you need help. The government wants us to use this program as a responsible way to deal with debt. Otherwise we would be left to our own devices to find help. But that is not what the government wants. They want us to get back to work and pay taxes. They need money to spend. Use bankruptcy when you need it. Unless you abuse it, it’s how you are supposed to do it. Also, read this.

Bankruptcy Doesn’t Make you a Bad Person.

A good person takes care of the important things in life, like health and family. When paying a creditor interferes with that purpose, the choice is easy. You are eventually going to have to retire. Someone you love will want to go to school or on vacation. You want to be able to provide that. However, paying creditors will not get you closer to that goal.

I Don’t Want to Destroy My Credit

Rebuilding credit today is a lot easier than it used to be. For instance, three credit lines reporting current for 12 months will qualify for most loans. Also, three credit lines reporting current for 24 months will qualify for government backed FHA loans. Finally, you can get an immediate credit card for renting cars and Amazon by getting a secured card from any bank. Read More.

Shouldn’t I Try to Pay Off My Debt?

Haven’t you been trying to pay off your debt? The terms of the debt make it impossible. In exchange for the lenders being able to charge obscene rates, you get to discharge your debt every eight years. The lenders will be fine. They made record profits last year.

But What if I Try to Pay One at a Time?

Certainly, let’s do the math.  So, let’s assume you only owe $10,000 in debt, which is the minimum you could owe, and you intend to pay $250 a month toward your debt.  Furthermore, let’s assume an interest rate of 22%.  Then, it would take over five years to pay off the debt. Even if you never missed a payment.  Bankruptcy can discharge the debt without another payment, and you can spend the $250 a month for five years.  You choose.