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.
Got a tip to share, or an inspiring recovery story? Comment below!
“I do everything for a reason. Most of the time the reason is money.” ~Suzy Parker