GRAPE JUICE OR SOUR GRAPES A LOOK AT BANKRUPTCY

“We need a fresh start Bob!”, Bob's wife said through tear streamed eyes. Bob glanced toward the tall stack of bills piled on the tiny desk in the dining room. It took fifteen years for Bob and his Sarah to build that pile. Some bills resulted from poor strategy while others from “life.” Credit card debt, tax debt and medical debt sought to squeeze out their last life breath. Bob felt the financial cords pull tighter upon his inner peace and said gently, “I’ll call a bankruptcy lawyer in the morning and make an appointment.”

Does this fictitious story seem similar to your situation to to that of another person you know? It's more common than we may think or want to imagine.

For many people bankruptcy serves as the “cure all” for a sick financial situation. Although it may help, bankruptcy can also cause some hidden ailments as well. Technical terms such as chapter 7 verses chapter 13, and fee schedules paid to the bankruptcy court verses a clean slate hold little value if some hidden truths fail to have adequate attention. Does bankruptcy give a person a fresh start or a sour ending? Let these facts answer that question.

First, an incurable tendency toward poor financial management will lead to financial hardships after the bankruptcy. Just give it time. Before the fresh start, gain a realistic perspective toward finances, obtain financial counseling if necessary. By all means, get a handle on how to manage money and budget. Keep the habit in place throughout the bankruptcy period and allow it to create that fresh start.

Next, look at the cards. Some people think that bankruptcy serves as the ultimate solution to gain a fresh start, and often it does. However, in some cases the bankruptcy card didn’t need to hit the table. Another card debt consolidation in their hand also had the power to assure victory in the game. Make a wise choice and then live with the outcome.

Set realistic goals. If bankruptcy serves as the only solution, then make realistic goals. Rather than leap back into the debt trap, enjoy the fresh air gained through the bankruptcy and make realistic goals. Rather than go into debt again for an item that holds little or no urgency, start a savings plan. The sought after item becomes a treasure gained through hard work rather than a quick swipe at the credit card machine, which by the way as a side note will occur. Credit card companies will come out of the woodwork like water bugs in the night. Keep a tight reign on your finances and obtain a credit report on a frequent basis from all three reporting agencies, Equifax, Experian, and Transuion.

Last and never least, look at the risks. A person that has a job where relocation holds strong possibility might hurt themselves if they do a bankruptcy. It could get tricky or even impossible when they sit down with the mortgage company. This holds to the point that proper financial management can save a person from unnecessary heart ache. Risks abound in bankruptcy, so Strategize and then make the decision whether to go into bankruptcy. Sitting down with a financial counselor and perhaps friends and family who’ve been through the same situation will also provide direction in this huge decision process.

Remember, the right steps toward a fresh start can mean seven years good luck rather than seven years bad luck. Proper knowledge about bankruptcy helps, but well planned action determines whether it's the right choice. Do we want grape juice or sour grapes? Proper planning and strategy will give us the right choice to make it a sweet situation. Like our two ficticious characters Bob and Sarah, only you can decide. I wish you the best with your financial future.