I've worked with many clients helping them through tough economic times and although bankruptcy can be a difficult and painful process, the good news is that people who take this route DO recover and often are stronger as a result. The key question is: What is your shortest path to financial recovery? If a bankruptcy could knock years off the time it takes for your restoration to good credit, then it is an option you should consider.
One client of mine was forced to declare bankruptcy a few years ago when a business partner defaulted on their company line of credit leaving a large lien on my client's personal bank account. Unfortunately this client's trust of a business partner put them on the path to bankruptcy court.
A common experience of my clients who are going through bankruptcy is to feel shame and that they are failure and this may be one of the biggest hurdles that they need to overcome. Learning not to be ashamed and that just because you have a bankruptcy doesn't mean that you've failed as a person or are worthless. My clients have told me that dealing with bankruptcy has forced them to really explore who they are and even reinvent themselves as a person. They eventually overcame their fears, treated their bankruptcy as a learning experience and came out of it even stronger.
Bankruptcy isn't ever planned, so it's not something that the average person researches or expects to have happen to them. This is why getting the right legal advice is so vital.
One of the most common reasons clients choose to declare bankruptcy is the dishonesty of a significant other. Especially during a break-up, if there are joint accounts or credit cards, one's partner may go off on a spending spree leaving you stuck with the bill.
Many women I've seen have had to file for personal bankruptcy after going through a divorce if their current job is not enough to sustain their debt. With business bankruptcies, there doesn't seem to be much difference between businessmen and businesswomen in their reasons for declaring bankruptcy. Other common reasons include job loss and illness.
It takes time to rebuild your credit after bankruptcy, usually about seven years. The good news is that the client I mentioned above is now doing well. They established belief in themselves and their ability to overcome barriers and have been able to boost their financial picture. They are living debt-free, they use credit cards but only for emergencies and pay off the balance in full each month. This client has their own business which is doing well and recently a bank offered a line of credit in their own name for their business.
So this story has a happy ending. If you're in a difficult financial position, please come and see me for a complimentary initial consultation. We can quickly determine if a bankruptcy is a viable option for you. I like to make sure that all my clients' stories have their own happy endings.