Credit 911: Secrets and Strategies to Saving Your Financial Life

CHAPTER 10

Bankruptcy: Losing the Battle to Win the War

A lot of people run into financial troubles due to circumstances beyond their control. When they do, they’re in good company.¹⁴ Among the well-known people who have filed bankruptcy are Walt Disney, Donald Trump, Dave Ramsey, Willie Nelson, and Henry Ford. Each and every one successfully emerged and thrived after bankruptcy. You must know when to say “when,” and known when enough is enough. If you earn $40,000 a year, and you have $80,000 in credit card debt, the chances of your ever getting out from under this debt are slim to none. Bankruptcy protection is there for the situations that need it. Even General Motors and Chrysler found themselves in the position where bankruptcy was the best option. Medical expenses beyond any health insurance coverage, loss of a job, or even an expensive divorce can all lead to bankruptcy. The stigma associated with the process makes it more painful than it should be. For many, bankruptcy is like a big sign hung around the neck and reading “failure.”

“Failure is the opportunity to start over more intelligently.”

—Henry Ford

This does not have to be the case. If you are thinking about filing bankruptcy, you should certainly make sure it is the only choice available. But if you do, there is no reason why you cannot survive the process and get the “fresh start” that you’re entitled to as part ...