Famous Folks File for Bankruptcy, Too
There's a longstanding myth that bankruptcy is for deadbeats. But the truth is, most folks who file for bankruptcy have jobs or are actively looking for work. Most can pay some bills. Most are intelligent, responsible, God-fearing citizens. They just need a little help.
If that's not enough to convince you that bankruptcy is more of a financial tool than a form of surrender, how about these famous names - Donald Trump, Walt Disney, and Abraham Lincoln. Each one found success after filing for bankruptcy.
Even baseball teams are not immune. News just broke that the Chicago Cubs are considering a bankruptcy filing. No, the Cubs aren't broke. They still draw 3 million fans to their home games annually. But their owner wants to make sure the team is free from liabilities so a potential buyer won't have to worry about fighting off creditors in the future.
Bankruptcy doesn't have to be a last-ditch effort. It can be a smart strategy.
When you file for a personal bankruptcy like Chapter 7 or Chapter 13, all creditor actions against you - including foreclosure - are automatically stopped courtesy of a court action known as the automatic stay. With Chapter 13, the automatic stay remains in effect until you get caught up on your debt payments - which are conveniently consolidated into an affordable repayment plan.
Filing doesn't mean you're insolvent. It just means you're taking responsibility for your finances. If you're losing sleep over your debt burden, bankruptcy can put your worries to rest by reducing the amount you owe creditors. That means you'll keep more of your paycheck for yourself, making other bills (like the mortgage) a lot easier to manage.
Bankruptcy might seem complicated, but you don't have to be a financial expert to figure it out. At DebtStoppers, it's our job to answer your questions. You can find out for free if a bankruptcy plan is right for you when you fill out our one-on-one debt analysis form online.
Take a cue from some of history's most famous people and institutions. Filing for bankruptcy isn't the end, it's a new beginning - the start of a brighter future.