Bankruptcy. You hear the word more and more these days. Whether it is Puerto Rico flirting with filing bankruptcy in an effort to reorganize their debts or the rapper 50 Cent filing bankruptcy to protect himself from creditors – bankruptcy is in. And you know what is out? Or at least slowly evaporating? The stigma of filing bankruptcy is nearly extinct. Historically bankruptcy was a word that carried shame and a connotation of failure. No more.
People are starting to become more educated on how bankruptcy can help them press the restart button. In 2015, the Federal Reserve Bank of New York came out with an excellent report on the Bankruptcy Reform Act of 2005. In summary, their findings show avoiding bankruptcy can backfire and instead, bankruptcy is a process which can help consumers change their lives in a positive manner.
For example, their report shows people that have filed bankruptcy actually gives consumers more access to new credit than those who are limping along trying to struggle to pay back insurmountable debt. They report, “People who have filed bankruptcy learn the reality that immediately following the discharge of their debt (3 to 4 months after filing bankruptcy) their mailboxes start to fill with new credit offers again. “In helping many consumers with their debt problems, I’ve seen within a year that they can start to get exceptional market rates on car financing, and within two years they can qualify for good mortgage rates.”
“The individuals who go bankrupt experience a sharp boost in their credit score after bankruptcy, whereas the recovery in credit score is much lower for individuals who do not go bankrupt,” says the Federal Reserve Bank.
Now you would never know that if you listen to credit counseling agencies, debt counseling or debt settlement companies. They like to sell and promote their brand of debt assistance by telling you bankruptcy should be totally avoided at all costs.
Bankruptcy is not for everybody but it takes a qualified attorney to give you all the alternatives and whether it may work for you. In my Orlando and Kissimmee bankruptcy practice, I try to make bankruptcy affordable so it is available to nearly everyone. Trying to the lowest price bankruptcy you can find is not what you want to do but at the same time – it is important to steer clear of attorneys that try to charge exorbitant amounts of money to file your case. In 2008, I filed bankruptcy and I learned how bankruptcy can change lives and get you on the road to a restart. So like Sy Sperling, the Hair Club for Men president from the ubiquitous commercial from the 80’s, “I’m not only the founder and president but I’m also a client.”