Repair Credit after a serious “business decision” forces some people (but not celebrities) to check out of life and never recover financially or emotionally.
Bankruptcy is “scorched earth,” right?
Bankruptcy only happens to bad people, who are irresponsible losers, right?
Bankruptcy ruins people’s lives with a BIG “B” tatooed onto their forehead.
MAYBE….
Bankruptcy does happen to honest, hard-working people who face life’s challenges.
In this article, you’ll hear a few of the most common questions I receive from people considering or facing bankruptcy. You’ll also discover the secret of bouncing back quicker than others after filing for bankruptcy.
And of course, even celebs make “business” decisions about their financial situation. Hopefully, those “business” decisions don’t destroy their friends or family members.
EVEN “STARS” KNOW BANKRUPTCY
Country music sensation Lorrie Morgan recently filed for chapter 7 bankruptcy protection to wipe out business-related debts.
She listed estimated liabilities between 1-10 MILLION smackers. YIKES! The bankruptcy filing showed her with assets between $500k and $1MILLION.
Here’s the point I want to make with you: In a released statement, Morgan claims it’s “…an unfortunate yet necessary part of the restructuring part of my business.”
You see, celebs make BUSINESS decisions. That’s all it is for them.
Apparently, Morgan’s creditors include the IRS <gasp>, banks, lawyers, etc. You see, nobody will get hurt…it’s only the IRS, banks & lawyers 
A Chapter 7 bankruptcy is total liquidation. On the other hand, a chapter 13 bankruptcy is commonly referred to as a ‘wage-earner’s” bankruptcy with a 3-5 year repayment plan. During a Chapter 13, you’re able to “reorganize” your debts rather than eliminate them entirely.
Did You Know? After you pay your normal bills each month and you have $100 bucks left over, this is the only money your judgment creditors in a BK 13 will get to split among them…a $100 bucks! Reorganization?
Obviously, you’ll want to direct your questions about bankruptcy to an attorney specializing in bankruptcy. Most of these attorneys offer free 30-minute consultations.
Here Are A Few Of The More Common Questions I Receive About Bankruptcy (BK):
1. How much do I have to repay if I qualify for an Chapter 13? The trustee assigned to your case takes your current income and monthly debt and uses a formula to calculate what’s left at the end of the month. Unless you have student loans, tax liens or unpaid child support (which you’ll pay in full), your unpaid creditors might divide a couple hundred dollars a month. That’s it. With a Chapter 13, your repayment period either is 3 or 5 years. That’s it.
2. Will bill collectors take my possessions? What you (have to) give up depends on the state in which you live. In Florida, if you own your home and you’re not behind in payments your home can be kept out of a bankruptcy. So can your furnishings and your car, unless your furnishings include an expensive art collection.
3. What should I do after my BK is discharged? It’s strongly advised you get copies of all three credit reports for each person (you and your spouse, for instance) declaring bankruptcy to confirm accuracy. It’s not uncommon for accounts included in BK not to appear as included in BK.
4. How do I re-build my credit after my bankruptcy is discharged? Whatever debt you did not include in a bankruptcy needs to be kept current (re-affirmed) & paid on time. Inside our members-only area, you’ll discover secrets to repair credit fast.
What Is Chapter 13 Bankruptcy?
When you file Chapter 13, you:
1. Repay a portion of your debts through a payment plan. ..you won’t pay much as there’s not much left over at the end of the month…right?
2. Give the money to a bankruptcy trustee appointed by the court, and the trustee pays the money to your creditors. This lasts typically 3-5 years. I know many people who upped their IRA or 401K contributions, and bankruptcy judges aren’t able to take your increased or existing 401k contributions.
I’ll share much more about bankruptcy as more and people, both unknowns like me and well-knowns like Lorrie Morgan, pour into bankruptcy courts to discharge debt. Not knowing Lorrie Morgan or how she’s dealing with bankruptcy, she apparently believes bankruptcy needs to be a business decision.
A business decision, huh? I’ll ponder this one and get back with you. In the meantime….
Repair Credit after filing BK 7 or 13 helps you bounce back sooner…the sooner you get started, the quicker you’ll be able to recover. In my book, “The Busy Person’s Credit Makeover,” you’ll discover exactly what to do and how to be one of the few who bounces back quickly from bankruptcy.
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