Five Simple Things You Can Learn from Bankruptcy
Bankruptcy is a fact of life in the United States. It happens, and it can happen to anyone. Famous people are not exempt from a bankruptcy. If you don’t believe me, just ask people like MC Hammer, La Toya Jackson, Larry King, and Margot Kidder, just to name a few of the famous on a very long list of those who have filed bankruptcy. If it can happen to successful and famous people of means, why do we think it cannot happen to us?
In the event bankruptcy has come your way, there is some good news about what is otherwise a very depressing moment in your life. As a society, we have come a long way since the days of debtor prisons and states. Our Constitution provided for our protection against those antiquated ways when it gave Congress the power to legislate bankruptcy law. Today, the primary laws governing bankruptcy are federal. State laws supplement the federal laws by honing out some of the necessary details. The laws have been designed to protect both creditor and debtor. There are basically two types of bankruptcies- voluntary and involuntary. Although rare, an involuntary bankruptcy occurs when a creditor legally forces bankruptcy proceedings onto a debtor. The greatest majority of bankruptcy legal proceedings are of the voluntary variety. Even famous people can be forced into bankruptcy if they cannot pay their creditors on time, regardless of the reason. Bankruptcy is a legal proceeding that was designed to allow the honest person to work their way out of a bad financial situation.
Once you have been afforded the opportunity to legally work your way out of debt, there are five simple things you can learn from your bankruptcy experience:
- Bankruptcy is not the end of the world. Bankruptcy is a rational choice you can make to get out of a bad financial situation legally. Once you have completed a bankruptcy, life does and will go on. Many people who have filed bankruptcy have gone on to be very successful. Donald Trump has filed for bankruptcy twice in this life, and most of us know he runs a multi-billionaire empire today.
- Your credit can be fully restored after a bankruptcy. It may take you some time and learning new financial disciplines, but in time, you can completely restore your credit. Depending on the bankruptcy, the record remains on your credit report from seven to ten years.
- The results of a bankruptcy often teaches those who have experienced it how to live within their means. You can learn from your mistakes. It is only when you keep making the same mistakes over and over that learning is a problem.
- Owning things is not the official definition of success. Owning a new car, owning your home, owning any material thing does not mean you have necessarily “made it” in this life. Your sense of self worth and happiness far outweigh material possessions as a criteria for success in my opinion. Mahatma Gandhi was a very successful famous person, and he renounced the ownership of material things as anything important.
- Hard work is what really works. When it is all said and done, hard work is usually always rewarded. The experience of rebuilding will be hard work, but with the right determination, anyone can do it.
There is no easy way out of a bad financial situation. They can happen to anyone, and the way out of them amounts to a lot of hard work and determination to overcome. Maybe you have found yourself in a difficult financial situation, and you are considering bankruptcy as an option. If this is the case, you are going to need a bankruptcy attorney to properly help you understand how the complex bankruptcy laws may apply in your situation. So, if you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan areas of Riverside or San Bernardino, California, contact us today. We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.
