Bankruptcy: Not As Bad As You Might Think It Is
There is a massive stigma about bankruptcy in our society. Most people are embarrassed by the very prospect of being on the brink of bankruptcy, and rarely discuss it even within their own families.
Personally, I consider bankruptcy to be one of the single most intelligent financial decisions I’ve ever made.
Yes, I’ve been through bankruptcy, and I’m happy I did it.
In the summer of 2007, I was flat broke. I was unable to pay my bills, including the mortgage. This was the beginning of the real estate bust, and definitely the end of my career as a real estate broker. By January 2008, I had swallowed my pride and accepted an entry-level administrative job at a tax firm in Denver (an hour commute each way). By April 2008, my home was foreclosed on, and I filed for Chapter 7 bankruptcy protection the next day.
For a divorced guy that eschewed material possessions, I had an enormous amount of debt. In my bankruptcy, I flushed a high six-figure amount of debt that I had amassed over the course of my adult life.
In August 2008, when my bankruptcy was discharged, I was floating on a cloud. Why? Because the burden of being massively in debt was suddenly lifted off my shoulders.
Also, by this time, I had made myself significantly more valuable at the tax firm I worked at, and was well on my way to obtaining my Enrolled Agent license from the IRS.
In other words, being broke and having to do what I had to do in order to stay afloat directly lead me to where I am today. In other words, going belly up directly set the stage for finally finding a career I truly love, and living a lifestyle that I wanted to live.
The single biggest benefit to filing bankruptcy is that the stress of dealing with bill collectors suddenly goes out the window, because they can’t call you anymore. Reduction in stress lets you focus on other things, and work towards being successful in other words.
If bankruptcy is something that’s crossed your mind, sit down with an attorney and discuss your options. It may be a discussion that you wish you’d had much sooner.
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