Recovering from bankruptcy isn’t as difficult as you may think

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

I hear this cry from many people worried about their financial circumstances after they have decided that bankruptcy is their only alternative when it comes to recovering from financial hardship. I’m not an attorney yet I work very closely with them in my real estate business.

On many occasions bankruptcy is leveraged to persuade a bank or lending institution to cooperate with a request to modify a homeowners mortgage or reduce unsecured credit card debt. Also bankruptcy is leveraged to stay (stop) a foreclosure. Many times this works as a strategy; although in certain circumstances it’s the only option.

I speak from personal experience when it comes to this, I had to file for personal bankruptcy several years ago to save my home from foreclosure. I figured since I was able to restructure my debt I would be alright. I went ahead with the bankruptcy filing to save my home from being sold at an auction, little did I know this was the beginning of my financial school of hard knocks.

I wound up not being able to make the payments to the trustee of the courts, which was violating the agreement I had made with the judge. I wound up dismissing my own BK so I could sell my house and make a run with the profits so I could find another place to live.

This is where my story “The Pillars of Wealth” really began. It was here where my eyes really were opened into the financial world and how if you weren’t involved in making the correct choices, you were going to be consumed by it. Take a look at our financial hardships as a Nation currently; our jobless rate and unemployment rates are skyrocketing; our unemployment offices are running out of money.

The “Wall Street/Main Street”meltdown, global economic chaos and crisis. The truth is we have really only seen the beginning. Once the foreclosure moratorium is lifted a new wave of homes and struggling families will emerge as the new generation of victims to this tragedy.

So back to my opening statement with bankruptcies on the rise as more and more families face tough challenges we find our world torn between the rule of 7 to 10 years of derogatory remarks pertaining to bankruptcy, the “taboo” of what bankruptcy means etc…

When making the decision to file you need to find a compassionate attorney, one who actually has your interests in mind not theirs I highly recommend using the “Discount family legal plan of America” through your “First Class FDI Membership”. Of course you can use your own sought out attorney yet with this membership you receive flat rates on Chapter 7 bankruptcy as well as discounted legal advise if you go outside of your free services. I’ll get more into that in another article as for now the recovery from a bankruptcy varies depending on which chapter you file. Chapter 13 is the worst bankruptcy you can file for.

Not only do you have to keep all of your debt, repayment to your creditors over a max three year period. You still have to budget your regular monthly expenses and the new proposed payment for the bankruptcy. Your credit is plagued with the bankruptcy for a period of 10 years instead of seven, you are not allowed to obtain new lines of credit during the repayment and a whole slough of rules to obied by.

With a chapter seven the bankruptcy is on your credit report for a period of seven years and you can start rebuilding after a two year waiting period. You figure out how to recover your finances, plan accordingly, and begin to establish a regular savings and investment account. You can continue to acquire financial stability during the bankruptcy, as long as you do not use credit during the “freeze or cooling” period.

I remember the feeling of receiving my first line of credit after my bankruptcy, the pride and confident feeling of recovery, then within a period of 9 months I had established a second line of credit and then a third. The same thing for my wife, we rebuilt our financial lives back from rock bottom. One line of credit at a time, one dollar at a time.

We knew the true value of credit, making good choices as opposed to running on an empty wallet, maxed out credit cards and the error of our ways (which indecently were mostly my decisions in the end.) I knew I had poor financial skill when it came to managing money long ago, I just never realized what the outcome would be.

My parents (mainly my Mother) spent money she hadn’t even received. I had become to accept this as normal, bankruptcy had happened in my before. Yet as a child I didn’t understand, even as an adult most people know that filing for bankruptcies are not good, many people that have not experienced this cannot relate to the concept.

Your pain is temporary although the pride that gets hurt in the process can scar you for a long time. This isn’t a bad thing and you shouldn’t look at it as one either, take the painful lesson, learn from it, take corrective action steps to change your money psychology.

Remember the path that brought you to this junction in the first place; then as you begin to educate and rebuild your financial security, you will be more proactive in making smarter financial choices. It’s from this point that success develops and becomes habitual for you. This is when you start to shine, choices you used to make seem so trivial.
You wonder why you had ever walked this path in the first place, you realize that your having to have it all now attitude. The “instant gratification mindset” or what I like to call consumerism mindset; you used to have will always tempt you to make impulse purchases, try to get you to blow your money like you used too.

However then the remembrance of your financial trial and tribulation, your onset to bankruptcy in the first place will dominate your feelings and the subconscious mind will usually prevail if you just listen. Otherwise you wind up living the time old phrase that states…

”For those who don’t learn from the past; they are doomed to repeat it.” Look at our current financial situation once more before we go, where do you stand today? Are you thriving or barely surviving? Only you know where you are, only you know how to stop the pain. I can guide you, I can even mentor you but only if and when you are ready.

Seek me out, ask for assistance and you shall receive. In fact coming in August I am releasing my first “financial fitness from financial failure courses” Whether you are looking to gain exposure to new resources to help with your finances, learn new ways to create consistent returns on your portfolio, build a business to invest or get out from under your current financial hardship circumstances. We will have the solution for you.

If you have not taken the time to download my book “The Pillars of Wealth” I suggest you do it now just click on the title above and you’ll be taken immediately to the download page to receive your copy.

If you feel that a book won’t help your situation you should take the few minutes to watch the “Financial Destination Inc.” video, then head on over to the main page to learn all about the Financial Destination Inc., a company dedicated to serving all of your future financial needs and learn what we can offer for you.

I guarantee this is the fastest way I can think of to recover from bankruptcy, financial hardship, all while learning the secrets to being successful with your finances; taking charge and control over your life once and for all, instead of always being the victim.

• These 29 Tips To Help Save You Money Funny how when we look at money, financial affairs and wealth we often overlook some of the most simple things. For example what about cutting back on items or finding ways to save on the purchases of the items or services, I read this article in Readers Digest a couple......
• Happy Labor Day Are You Working On Your Finances Today Image by Robert Couse-Baker via Flickr Here we are again entering the holiday season, beginning with today and running directly into the major holiday season. Halloween, thanksgiving and of course everybody's favorite Christmas. With the soon to be spending season coming right around the corner at this time of......
• Snowball your way to financial freedom Debt is like a plague that eats your hard earned money faster than you can earn it. You work for your bills and your bills take everything you work for. Soon it becomes a stressful vicious cycle that makes people bitter and angry. Your outlook becomes bleak; you see no......
• Action leads to success with your finances Yes action the simple step by step process you use to allocate a budget, register your expenses, invest in your future these are all activities you must participate in to achieve any level of financial success or independence. If you aren't watching over your finances they can easily slip out......
• Organizing your daily financial routine Wealth it all starts with a concept, the challenge is making the mind choose from the heart. I know this may seem funny at first but you will soon realize that your actually doing it. You see when you make choices they always come from the heart first, then the......

• How to Earn Money Online for Beginner – Let's Learn and Start Now   Every body is asking how to earn money online, what is the easy ways to earn money. Anyone can make money online with the right guide, support and the right system. The important that you understand what you are doing and doing persistently. Most of the people fail to......
• Money Hacks Carnival: Middle Name Pride Day Edition Happy Middle Name Pride Day, everyone!  There seems to be a bit of inconsistency as to what the proper day to celebrate MNPD is - Holiday Insights says that it's "always March 10th" whereas the Wikipedia article says it's on the Friday of the first full week of March as......
• Personal Finance Links (I Almost Died Edition) I'm gong to keep think intentionally short. On Friday, you almost read the last post in Lazy Man and Money history. I literally almost died. I'll go into it in more detail for tomorrow's post. It might even be a whole weeks' worth of writing. I don't want to overshadow......
• Personal Finance Links: Thanks For All the MonaVie Mentions As some of you know, I put a call out on Monday to spread the word of MonaVie's lawyers bullying tactics. I should have also mentioned about their employee calling me an annoying douche. Well I gave them a fun response that basically amounted to "stuff it on your legal......
• The seven roads to financial ruin and how to avoid driving on them. So, perusing my usual financial sites this morning, I came across this article titled "7 roads to financial ruin". Now that's a title! Upon reading the article, I found it to have some things that I am sure everyone already knows, but she went into great depth on each of......