This is Part 2 of my Personal Chapter 7 Bankruptcy Story.

As my debts increased and my earnings decreased, I found myself in a really bad financial situation. I was sinking into a “financial black hole.”  See Part 1 of my story. I knew I had to do something.  I knew nothing about Chapter 7 bankruptcy or bankruptcy in general. I wasn’t considering that an option. Heck, I had never heard of this option. And, bankruptcy was always a bad word. It represented failure, and I viewed my life as a success.

Special Note: “Once considered a shameful last resort, bankruptcy in the United States is emerging as an acceptable method of resolving serious financial troubles.” Read More…

In the past, if I were in debt, I believed my earnings would increase and I’d be able to pay my debt. It always worked. I knew I could pull myself out of this. I was only fooling myself.

These were different times. I was an independent small business owner selling insurance with great clients in a great industry. But, these clients businesses were failing. And, they not only failed, they failed hard and they failed fast. Even as I write this testimony today, I’m still getting notices from various bankruptcy courts on these business owners still in the process of completing their bankruptcy.

This forces me to wonder; what took them this long? They are just short of 10-years in their bankruptcy process. I must admit, I did procrastinate myself.  I first met Mr. Gunther in 2011. My Chapter 7 Bankruptcy wasn’t approved until 2013. I waited entirely too long to pull the trigger. But, I’ll tell you, when I finally received the bankruptcy adjudication court order finalizing my bankruptcy, it was a feeling of tremendous financial relief.

 

My Personal Chapter 7 Bankruptcy Story: Money shouldn’t be an object!

Find it! It’s the best investment you’ll make. You get what you pay for. This was a personal lesson learned. I understand, if you are suffering financially, it’s hard to come up with the money to hire a successful bankruptcy lawyer to get the job done for you. You don’t want to file a bankruptcy without an attorney. And, Daniel Gunther is best bankruptcy attorney in Southern Maryland. My advice is to find the money. This is one of those times that you can reach out to family or friends for help.

My Personal Chapter 7 Bankruptcy Story: Impact on Credit.

A Chapter 7 bankruptcy will have a huge negative impact on your credit. I understood that, but it wasn’t an issue that slowed me down; once I finally had the courage to pull the trigger. I was able to keep my truck and my house. I knew I didn’t need to finance a new vehicle or home anytime soon. Within a few weeks, I was receiving credit card offers from companies that offer really high rates. I understood that I needed to reestablish a positive credit history. At that point, my FICA score was really low, approximately 530… really poor! So, I took them up on their offers.

I used them to my benefit. I took their credit cards. I used them to make small purchases, like tank of gas.  And, I paid off my balance every month. Slowly, but surely, I began to get better offers. Its a process. It take time and it takes a bit of discipline. But, if I can do it so can you!

More on my credit in my next article: My Personal Chapter 7 Bankruptcy Story: Part 3