A few weeks ago, a friend and I were talking. Then out of the blue he blurred out like someone who was about to be tortured. “I am afraid that I am going to have to file for bankruptcy.”
I could see the pain in his eyes. He was the type of person who did not have a lot of money. He paid his bills. He took pride in providing for his family. The mere idea of bankruptcy was the worst possible thing that could happen. He believed that if he could not provide for his family he was the scum of the earth.
Several years ago we where almost to the point of living on the street, before I spoke that dreadful 10 letter word (Bankruptcy). We could not afford to hire a lawyer, so I went to a self help legal organization to get help.
The first words out of the paralegal’s mouth was, “you are not alone”. This was at the start of the Great Recession. He was starting to see a sharp increase in number of people filing for bankruptcy who would normally of have never considered it.
Dave Ramsey call the Myth of Bankruptcy, “I’ll just file bankruptcy and start over; it seems so easy.” However, the truth is: “Bankruptcy is a gut-wrenching, life-changing event that causes lifelong damage.” Here I agree with Dave 100%.
Bankruptcy is like divorce in that they are both separation from commitment and responsibilities. It also can be very draining, emotionally. Paying bills and taking care of business makes everyone in the family feel good about the family. When bills are piling up, creditor calling, and fear strikes when someone knocks on the door it take a toll on everyone in the home.
The fact is Bankruptcy and Divorce are a legal means to help those with the inability or impairment to continue with a commitment. Both Divorce and Bankruptcy were set in place to help people to start a new.
It has been several years later since we went through our bankruptcy. What did we take away from it? We are managing our money better. I started The Shopping Nazi as means to learn to manage our finances better. It has worked. We waste less money. Before we buy or make any financial commitment we look close at the far reaching affects.
Why have I write this today? How is hearing about the pain and agony bankruptcy will cause help you save money?
One: You will be motivated to keep a closer watch on your spending in relationship to what goes into your bank account.
Two: Momentary pleasure of the purchase of that neat thing you thought you needed, just may take away from meeting a financial obligation to someone you owe money.
Three: Save every penny you can. Considering the current financial climate you may need it when you least expect it.
