Going Bankrupt? Bouncing Back!

Do you struggle under the mounting pressure of debt…personally or in your business?  You are not alone.   

  • Americans carry, on average, $8,000 in credit card debt from month to month.  If you were to make only the minimum monthly payment on that debt, at 18% interest, it would take 25 years to pay off and cost you more than $24,000 in total.     
  • 46% of all Americans have less than $10,000 saved for their retirement.
  • 96% of all Americans will retire financially dependent on the government, family or charity.   


Well, in this great country at this point in history, you have options. Bankruptcy is one.   

  • If you are exploring bankruptcy, you will still need to get to KFP – a Known Financial Position.  (Nope, you can’t just walk away from the financial mess.)  Clean up your business Balance Sheet.  Create a personal, family Balance Sheet.  Assets = Liabilities + Equity.  You have to KNOW what you are dealing with!
  • Stop buying stuff on credit.  When you are in a hole, stop digging. Not to make light of tough situations.  You just don’t want to continue the behaviors that created the situation.
  • Study up!  Check out NOLO. It’s a great site for learning Bankruptcy 101. Chapter 7 is more of a clean slate option for personal bankruptcy. Chapter 11 and 13 are appropriate for businesses.  However, the details are involved and a bit confusing.  You increase your power if you are willing to learn the nuances.
  • The Catch 22 is that if you are broke, it’s not really an option to pay for help.  You may opt to file yourself, or find a free bankruptcy clinic, or enlist an attorney friend with a big heart…or willing to trade.   
  • Can you avoid bankruptcy?  You might negotiate on your own behalf. Talk to your debtors…and together you may work out a better payment plan.  Could you sell assets?  Raise prices?  Cut expenses?   Now is the time to explore all options!

Many (most, perhaps!) successful people I know have looked down the barrel of bankruptcy at one time or another. Remember to breathe.

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