Going Bankrupt

Thinking About Going Bankrupt?

Once you make the decision that going bankrupt is the best choice for you, the process is fairly simple. You go through quite a bit of paper work initially. There is less to do with a chapter 7 bankruptcy than there is with a chapter 13 filing. Either way, the amount of paper work and documentation increases based on the amount of your creditors, and your assets.

There is the “limbo” period. This period can drag on a very long time. Creditors and the courts are busy working away on the process and you are left feeling like a young teenager worried about asking your parents for money to go to the show. While in the process of bankruptcy, before you are released, you can easily end up feeling depressed, angry or embarrassed. That’s normal.

Sometimes there is a rush of emotion that comes once you’ve made the decision to file. Lifting a lingering, huge debt load off your back can sometimes cause people to break down. The upside is that almost instantly the harassing credit and collection calls stop. It is illegal for creditors and collection companies to call you once you start the process of going bankrupt.

Does Going Bankrupt Mean You Are A Bad Person?

Sometimes bad things happen to good people. Many people in society consider people declaring bankruptcy to be lazy or irresponsible. This might

bankruptcystigma

be true in a few occasions, but generally people are forced into filing for bankruptcy because of a few unexpected financial situations that are many times beyond their control.

It simply isn’t fair to make people suffer for the rest of their lives because of a few financial surprises. The best thing anyone can discover while going through the bankruptcy process is to evaluate what got them to that situation. Many, many discharged bankrupt individuals will  change the way they deal with credit, finance and budgeting in the future.

Should you be ashamed about going through bankruptcy?

Well, you shouldn’t be admired, but here’s a last point to think about. Most of the wealthy, successful business people you admire have gone bankrupt at least once. It isn’t a prerequisite for wealth, but it you help you realize that it doesn’t have to be a pattern that repeats.

Take the time to evaluate your decision making process, and what you’ll learn from this event that will help you in the future. It is the most valuable lesson you can learn from going bankrupt.