When people are in a Chapter 13 bankruptcy and hit a snag in their case,  often they request a hardship discharge.  The name alone should indicate that this type of discharge is not given upon a mere request.  There are specific requirements that must be met before you can even be considered for this type of discharge. “I do not want to be in the bankruptcy case anymore” it not a good enough reason.

As attorneys we look to the bankruptcy code for guidance when seeking a discharge.  A hardship discharge can be found under 11 U.S.C. 1328 (b) for guidance as to who qualifies.  The attorney must first draft a motion requesting the hardship discharge and outlining specifically as to why you would qualify.  The first step in the analysis is whether or not your Plan is confirmed (approved by the court).  If the answer is yes the plan is confirmed and you qualify for a regular discharge  you can move on to the next step.

The attorney must determine whether or not you can continue to make the ongoing Plan payments.  The code describes this as a modification.  In layman’s terms it is what can you do to help your self?

Can you make the ongoing Plan payments?  If you cannot, why not?  If you surrendered something could you make the ongoing Plan payments?  If you reduced your expenses could you make the payments?  If you obtained another job could you make the payments?  These all may be considered when analyzing this step of a hardship discharge.  We must show that your failure to complete the Plan payments are due to circumstances for which you should not be held accountable for.  Once we complete this analysis we move on to the next step.

In filing a Chapter 13 you always have to consider what the trustee in the case would have been able to receive in the case if it were filed as a Chapter 7.   Let me try an illustrate this through an example.  You file a Chapter 13 and own a Hummer worth $20,000 at the time of filing the case.  The amount of money that you owe to the lender on the date of filing is $10,000.  This is known as lien against the vehicle and in this case the lien leaves $10,000 in equity in the Hummer if you sold the vehicle.  This $10,000 in  equity is an asset that belongs to the Chapter 13 at the time of filing.  If we use the State of Missouri exemptions I can protect $3,000 of that $10,000 equity.  This exemption will reduce the equity asset to $7,000.   $20,000 (value of Hummer) – $10,000 (debt owed to the lender to purchase the vehicle) – $3,000 (the amount of the exemption I am allowed to use to protect an asset) = $7,000 cash that may be used to pay down your debt if the Hummer was sold for value.

Therefore, in a Chapter 13 you must pay into your case $7,000 over the life of the case to be distributed to your unsecured creditors.  In a Chapter 7 you would either have to pay the Chapter 7 trustee the amount in equity ($7,000) or the trustee would take the Hummer and sell it.  Once the proceeds are received the trustee would pay off the lender first, pay you $3,000 because that is the amount protected and then take the remaining funds to pay  towards your unsecured creditors.

So in analyzing the hardship discharge qualification if the $7,000 had not already been paid into the court you would not qualify for a hardship discharge.  But what if you did not have any non-protected assets that you were paying to keep in a Chapter 13?  If under the Chapter 7 analysis the trustee would have received nothing then you would not have to pay anything into the Chapter 13 towards the unsecured creditors to receive a hardship discharge.  Bottom line if the Chapter 7 trustee would have received funds if this case was a Chapter 7, you will have had to pay in at least that amount to the unsecured creditors in the Chapter 13 case to be considered for a hardship discharge.

So if:

1. Your Plan is confirmed; and
2. You are eligible for a regular Chapter 13 discharge; and
3. Your current circumstances prevent you from making your ongoing Chapter 13 payments; and
4. The circumstances creating this inability to pay is out of your control; and
5. You have paid into the Chapter 13 towards the unsecured creditors the amount that would have been paid if you filed a Chapter 7; and
6. There are no changes you can make to allow you to make the ongoing Plan payment;
7. You just might qualify for a Chapter 13 Hardship Discharge.

Remember that knowledge is power.  The more knowledge you have about the bankruptcy code the more power you will have in obtaining a discharge in your bankruptcy case.

Get the word out. You have the power to change your mindset.

So the new year has started.  Have you made a New Year’s resolution? If you have, how are you doing with it so far?

Isn’t true that you never want something more than at the moment you make the  determination that you are going to avoid something? It makes no difference if it is pop, chocolate, smoking or credit cards.  Think about that initial overwhelming urge that rises up inside of you.

It is this urge that often makes the difference between succeeding in changing the behavior or continuing down the same path.  When you tell people they cannot use credit cards anymore it is not uncommon to see sheer terror wash over them.  “What do you mean I cannot use credit anymore?  How am I going to put gas in the car or food on the table?”

One way to look at changing your spending habits is to not think of this change in a negative way but rather a positive way.  Instead of thinking, I cannot use credit anymore, say to yourself I am going to use cash to pay for my everyday needs.  Instead of saying, how can I put food on the table, say to yourself I am going to learn to budget and cook more meals at home.

A positive mindset and reinforcement through achievable daily goals are ways to modify behavior.  Set a daily to goal to pay cash for the things you need.  Take it on day by day basis and take pride in your daily accomplishments.  Changing your mindset and behavior is no small task.  Still not convinced, ask anyone who has stopped smoking.

The right mindset is one of the keys to a successful bankruptcy.   When you get into a positive mindset you will start to view things in a different way.  Additionally you will begin to the notice the positive side of being debt free and breaking the addiction to credit.

This is a new day and a new year full of possibilities.  The power to change is within each of us.  Remember that knowledge is power and the more knowledge you have about changing your mindset the more power you will have to break the credit card addiction.

Chip's Jedi powers.

When you file for bankruptcy you must ask yourself are you in a reality or  fantasy frame of mind?  When I was young , one of the professions I pursued and dreamed about was being an actress.  I trained, auditioned and actually took several classes in college along the way.  I am talented enough to be represented by two agents, one in Kansas City and the other in North Carolina.   In my fantasy view of my acting ability I am every bit as talented as Angelia Jolie.  Even though I have appeared in several national films the reality is that my talent and skills are much more suited to being a bankruptcy attorney than an actress.  Facing reality is a hard position for anyone to be in and truly is the first step that one must take when you consider filing for bankruptcy relief.

People often have a fantasy view about what bankruptcy is like and what it will do for them.  Please allow me to walk you through an example.  A debtor comes to the office and says ” I need help with my bills as I just cannot make ends meet.”  This particular debtor has monthly bills of a mortgage payment of $1,000, car payment of $350 and utilities of $200.  Additionally this debtor is behind $5,000 in their mortgage and wants to save their home.  Keep in mind these expenses do not include other budget items such as fuel, food and clothing.

In examining the budget the debtor tells me that their take home pay is $1800 per month.  This is a reduction in pay because they were laid off in 2010 and this is the only job they could obtain.  To complete the financial picture they are also looking to discharge $30,000 in credit card debt.  Their fantasy is that bankruptcy will resolve all their financial woes and they will magically be able to afford the home, vehicle, make the credit card debt go away while making ends meet.  But is this view set in reality?  The floor of their budget if they were even is $1550 per month.  This total is comprised of the mortgage, vehicle payment and utilities.  Subtracting the $1550 from the $1800 net pay  leaves $250 a month to cover food, clothing, fuel, medical and other misc. items.  So no I do not think that this debtor is set in reality just yet.

The reality outcome of this scenario is that without a loan modification and/or other changes there is no way that this debtor can file a Chapter 13 to save the home.  Why?  Because the reality is they do not make enough money meet their basic necessities let alone a Plan payment.  The reality is that bankruptcy will not re-write the mortgage terms.  The reality is mortgage modification and bankruptcy are not the same thing.  The reality is that no judge can force the mortgage lenders to issue a modification. And the reality is that some times bad things happen to good people.

Are you stuck in one version of reality and therefore should never consider a fantasy view? Absolutely not!  When Walt Disney began to pursue his fantasy of cartooning lovable characters he faced many harsh realities.  Walt’s reality in the beginning was that he was not a savvy business person and it cost him dearly.  However Walt decided that he could take his fantasy and make it his reality.  This process is not one that occurs overnight nor does it occur absent hard work, sacrifice and persistence.  Changing one’s financial picture through bankruptcy is the same process.

Let’s take a look at the financial picture again of the debtor outlined above.  Would I advise them that a Chapter 13 to save the home is absolutely impossible? No, my analysis would evaluate what is this debtor willing to do to make the fantasy of keeping the home into a reality.  Are they willing to do the work to attempt a loan modification?  Are they willing to take on a second job or a roommate? Depending on the principal balance of the vehicle are the willing to consider surrendering the vehicle and purchasing a less expensive vehicle? Basically I want to know what are your goals and expectations.  I have seen many miraculous things occur in bankruptcy but the bottom line is that debtor MUST be set in reality if they expect to have a successful bankruptcy.

Everyone has a fantasy about their situation.  Even my my dog has a fantasy.  Chip’s fantasy is that he possesses special Jedi powers and he is able to move his ball about without human intervention.  However the reality is that ball is not going to move unless there is an earthquake, tornado or human intervention.  Unlike Chip you have the power to change reality into whatever you desire if you willing to do the work.  No matter how long Chip stares at his ball it will never move without some intervening force beyond his control.

Would it not be a great Christmas gift to yourself to take control of your financial situation and in turn change your financial reality?

Remember that knowledge is power.  The more knowledge you have about of your financial picture the more power you will have in making your fantasy your new reality.

You want to file bankruptcy but you are not sure if you are eligible to file again. There is a quick an easy way to see if you MIGHT be eligible to file and receive a discharge. On the top line of the image above choose the case that you have filed in the past. Then come down and choose the current case you wish to file on the left hand side of the image. This will provide you a preliminary idea of whether or not you may file another case and receive a discharge.

Is this a hard and fast rule? No, and that is why you should always contact a qualified bankruptcy attorney to seek legal advise if you are considering bankruptcy. Can you file even though you are not eligible for a discharge?  It depends.  Let’s stay you are being hounded by creditors and you want to stop them for a moment.  Can you do that? Yes you can.

Let’s run through an example.  Will you receive a discharge if you have filed a case and received one within the past 14 months? No, but the advantage of filing a new Chapter 13 even though you are not receiving a discharge is that you can pay what you can afford to pay to the unsecured creditors.  Then later seek to either continue paying the debt at the end of the 3 to 5 year Chapter 13  or file a completely new case that qualifies for a discharge. Check with a local attorney as this is just an example and the law in your area may vary.

The key to the formula when determining if you are eligible for a discharge in a new case is whether or not you received one in your prior case.  If your case was dismissed than the formula does not apply.  So what is a discharge?  The United States Bankruptcy Court defines discharge as:

The man who forever changed the way we communicate.

Knowledge is power and the more knowledge you have about a subject such as bankruptcy,the more power you will have to make an informed decision.  Steve Jobs lived by the philosophy that knowledge is power and the more knowledge he gained in the computer world the more power he had to change they way we communicate.   The more knowledge that we as individuals gain about the world around us the more power we will have to change that world for the betterment of all mankind.

Steve did not allow uncertainty and difficult times to force him from his path of building one of the most innovative companies the world has ever seen.  Steve’s work has been so innovative and cutting edge that he is categorized with a small group of people that have change the world.  Thomas Edison brought communication and light to the masses.  Henry Ford brought us the automobile that allowed us to travel outside of our cozy bubble.  Marie Curie brought Nobel Prize winning knowledge about radiation.

All these people had a common theme.  They thought outside the box, they did not let hard times hold them down and they kept their eye on the finish line.  Finally that finish line was really just a short break before a new finish line pushed the envelope even farther.

We forget that some of the most powerful people in the world had humble beginnings.  Steve dropped out of college after one semester but began auditing the classes to further his knowledge.  Because life is expensive Steve too proud to survive by crashing on people’s floors, returning Coke bottles for money and eating free meals at the local Hare Krishna Temple.  It is not our failures that define our lives, it is how we proceed from that failure that defines us.

Steve’s travel through life is not unlike another famous American, Walt Disney.  Both of these gentleman had bumpy roads to travel along their path of success.  Steve co-founded this company called Apple in 1976.  In 1985 Jobs was fired from Apple after a power struggle and the failure of Lisa computer.  In comparison Walt Disney created a character called Oswald the Lucky Rabbit.  Apparently Oswald was not so lucky because Walt lost Oswald to Universal .  Both men gained knowledge about the business world and then used that knowledge as power to turn their failures into successes.  Lesson learned: no one was going to take anything from them again without them knowing it.

Did either gentleman give up, roll over or call it quits?  Certainly not.  They did not allow their perceived failures to define them.  They did allow their perceived failures to be a teaching moment as well as a stepping stone.  As such,  Apple and Oswald both came home in their respective time.

In 1996 Apple bought Steve’s successor company called NeXT (which was a commercial failure).  This move brought Steve home to his mother ship company, Apple.  In 2006 Disney/ABC allowed Al Micheals out of his contract to move to NBC Universal but Michaels could only do this  if and only if Disney was allowed to bring Oswald back home along with the films that Oswald starred in.

The reason Steve Jobs and Walt Disney succeeded is because they knew knowledge is power.  So what the ordinary person perceives as a failure they perceived as a great opportunity to learn and use the experience as a stepping stone.  Some of you reading this may say that this is all well and good but what does this have to do with bankruptcy?  Good question.  Thanks for asking.

When Steve Jobs returned to Apple in the 90′s he said that his opinion “the company was only 90 days away from filing bankruptcy. “  Apple’s net worth today is over $65 billion.  Steve Jobs net worth is over $6 billion.  On October 4, 1923 in Kansas City, Missouri, Walt Disney’s creditors forced him into bankruptcy taking all his assets to pay the creditors.  Walt did not allow this perceived failure to stop him.   Instead he gained knowledge about what not to do in the future and moved on to the next adventure teaming up with his brother Roy for business advise.  Walt’s tenacity and perseverance helped him to create the Happiest Place on Earth and a little mouse that is known world wide as Mickey.  Walt Disney was reported to be worth over $1 billion when he passed.

Knowledge is power.  The more knowledge you gain about any subject you choose, the more power you will have in that particular subject.  So if I may, I would like to share what I have learned about Steve Jobs business model for success:

“My model for business is The Beatles:  They were four guys that kept each other’s negative tendencies in check; they balanced each other.  And the total was greater than the sum of the parts.  Great things in Business are never done by one person, they are done by a team of people.”

What great words to live by whether you are running a business or running a household.  We are all human.  We all make mistakes and in today’s economy we are all struggling.  But do not let the challenges of of everyday living define who you are.  Seize those challenges as opportunities of knowledge and use them as stepping stones to your next adventure.  Who knows, you just might hold the key to the next innovative product, theory or thought that changes the world.

Bankruptcy is about making tough decisions.  If it was easy than everyone would do it and the law itself probably would not be effective.  Bankruptcy is a give and take system.  You what to take a discharge of your debt from creditors but in return you must generally give something.  Whether it is attorney’s fees, time in going to court, giving of yourself to live on a budget or sometimes it is giving up an asset.

If you cannot afford your home or vehicle you might just have to surrender that asset in order to obtain your discharge.  The court unfortunately is not going to care whether or not you have worked your entire lifetime to purchase a sports car or your dream home.  The court and the creditor just want to know one thing.  Can you afford to pay for your asset?  If the answer is no then you may have to surrender that asset.

This decision is more prevalent today than at any other time in our history.  With unemployment on the rise people cannot afford to live as they had in the past couple of decades.  So if you are getting ready to file bankruptcy or even considering it, you must take a hard look at your assets and decide whether or not you can afford the lifestyle you are currently living or is it time to reset your priorities?  It is critical for your financial and physical health that you set proper priorities.  We are seeing a tremendous increase in medical debt for people from the stress of trying to keep their current pace of living.  No vehicle, home, collectible or timeshare is ever worth losing your life, marriage or soul.

So yes, you may have to surrender a home or that sports car in order to have a successful bankruptcy.  Yes, it may be a very tough decision and yes, it may be gut wrenching.  However if at the end of the process you can emerge debt free, sleep through night, and/or stop fighting with your spouse or loved ones wouldn’t it be worth it?

Knowledge is power and the more knowledge you have about filing bankruptcy the more power you will to make a fully informed decision.  A decision without surprises or gotchas when you go to court.

America has become addicted to reality shows but are these shows truly set in reality or are they helping to bankrupt our souls and bank accounts? The shows are fascinating from a psychological point but nothing more.

When growing up and speaking to anyone who watched wrestling the unspoken rule was that everyone knew that it was not real but you did not speak about it. Much like our favorite seasonal fictional characters that visit us throughout every holiday season. But reality shows have taken our society to a whole new low. Many of these families and individuals are not only spiritually bankrupt but they are financially bankrupt from not facing REALITY.

Every week I hear two quotes in my head. “Live like no one else so that you can live like no one else”, Dave Ramsey. The other is from one of my Chapter 7 Trustees. If anyone, absolutely anyone, comes before Gary Barnes with a negative budget, even if it is $1, his voice lowers and he will lean forward an ask; “folks you are here to get a FRESH START and you cannot obtain that fresh start if you keep spending more than you make.” When he follows up with the inquiry about what they are going to do to change the budget so that it is in the black instead of the red, he usually receives a blank stare from both the attorney and the debtor.

Why does Mr. Barnes ask this question? He wants to ensure that the debtor is set in reality and will tell them “that if you do not change you spending habits you will be back before me in the future.” Bankruptcy was designed to give people a fresh start when circumstances beyond one’s control caused their finances to spin out of control.

The new wave of reality shows was supposed to give us a picture of how others lived their lives. It is the evolution of shows such as Lifestyles of the Rich and Famous. But as with many things in the media what is being portrayed is not true reality. You need to look no further than the Real Housewives series.

At first glance these women appear to have the perfect life, home and family. Many viewers compare themselves to these women and set their own bar of success accordingly. The reality is that many of these are financially struggling, getting divorced, do not have healthy relationships with theirs kids, facing foreclosure and/or bankruptcy.

The reality is, if you spend more than you make you will go broke. The reality is,  if you lie to the bankruptcy court you can be charged with a federal crime. The reality is, most of us have to work to pay our bills. The reality is, that some cannot afford the luxuries that others can afford. The biggest reality is, that at the end of the day if you are always trying to keep up with Jones, Kardashians or the Housewives you are not living your own reality.

Remember that knowledge is power and the more knowledge you have about living within a budget the more power you will have to live within your personal reality.

There are many issues that can arise when you file a Chapter 13 bankruptcy case and insurance proceeds from a vehicular accident may be one such issue.  Let’s presume the following facts:  You are two years into a five year  Chapter 13 Plan, you have had an accident that has totaled your vehicle, your full coverage insurance is going to pay the value of your vehicle, you wish to keep the vehicle because even though the vehicle is totaled you can repair the vehicle and the creditor is now objecting to keeping the vehicle.  If you are paying off your vehicle in a Chapter 13 and the insurance payment will reduce the amount that you now have to pay why would a creditor object to you keeping the vehicle?

In a Chapter 13 bankruptcy the creditor always has the risk that the debtor will stop making the payments or the debtor will surrender the vehicle.  Either way the creditor loses because they are not going to get their money and the vehicle may not be worth more than what they could receive by turning it over for scrap metal.  So when an accident occurs the creditor becomes excited because the insurance company must pay the lien holder if there is a remaining balance on the loan.  If debtor wishes to keep the vehicle after it is totaled the overall  payout is reduced by salvage value of the vehicle.  This means that the creditor will receive less money in a lump sum and they continue to carry the risk that the debtor will complete their Chapter 13.

You have a choice when you are faced with this situation.  You do not have to give up the vehicle if it is has been totaled in an accident and you are in a Chapter 13.  Do not let the creditor bully you into a decision.  This behavior is more common with the “buy here pay here lots” but as our economy continues to slide deeper into the negative it would not surprise me if the mainstream lenders begin to encourage debtors to surrender their totaled vehicles instead of keeping and repairing them.

If you have had an car accident and are currently in bankruptcy let your attorney know your situation as soon as possible.  Do not sign any documentation or agree to anything unless you check with your attorney first.

Remember that knowledge is power and the more knowledge you have about your rights in bankruptcy the power you will have to complete your bankruptcy successfully and regain financial control.

To sign or not to sign a reaffirmation agreement is always a question in a Chapter 7 Bankruptcy when there are secured debts. Bankruptcy Law Network is presenting information regarding the reaffirmations and what you should consider before signing one.  You can click here to review all articles regarding the subject of reaffirmations.  If you were to gather 5 attorneys and ask for their opinion on reaffirmation agreements you would most likely receive 5 different answers regarding this subject.  Hence the reason of why we have chosen to write a series on this subject.  This article will review why you may want to consider signing a reaffirmation agreement.

As Kevin Gipson outlined in his article if a reaffirmation agreement is signed it will hold the person liable for the secured debt after the discharge is entered in their bankruptcy.  For some people a reaffirmation agreement might give them the fresh start that they were looking for because no matter how much debt that they discharge they still cannot afford their current house or vehicle.  But let’s examine the flip side of this argument.  Let’s say that if you discharge all your credit card debt and you have a stable income and you have a reasonable budget, would the advise still be to not sign a reaffirmation agreement?  As with all things in bankruptcy my answer would be it depends and it would be necessary to examine the following factors.

You may wish to keep your vehicle because it is almost paid off and in good condition.  You may wish to keep your home because it has equity in the home and fortunately the monthly mortgage is less than or equal to rent in your market.  If this is your situation then you may be a great candidate for a reaffirmation agreement.

If a reaffirmation agreement is NOT signed and you are keeping a home or vehicle, the loan company will cease to send monthly billing statements.  So if you are late on a payment then the loan company may proceed under state law to either reposes the vehicle or foreclose on the home.  Further, the loan company will not update the credit bureau to give you credit for the monthly payments you are making.   This was generally true just for loans for vehicles but in today’s market we are finding that both vehicle and home lenders are refusing to update the credit reports for those who have not signed a reaffirmation agreement. Now, once the loan is paid in full the loan company must update the report as paid in full but until such time they may not give you credit for your hard work.  What about when you refinance your home?

If a reaffirmation agreement is NOT signed, the mortgage company will refuse to offer a refinancing agreement because the debt was technically discharged in bankruptcy.   A combination of an unsigned reaffirmation agreement and a discharge means you will have to jump through several expensive hoops to refinance your home.

You will have to file a Motion to Reopen the bankruptcy, a Motion to Set Aside the Discharge, a Motion to Extend the deadline to file a reaffirmation and then file a reaffirmation.  All this takes attorney time to file those documents and attorney time costs money.  So in the long run, depending on the facts, it might be more prudent to sign the reaffirmation agreement while your bankruptcy case is open.

So let’s boil this down to a few key questions you need to ask before signing a reaffirmation agreement to reduce the risk of expensive hoops in the future:

These questions can be used when deciding whether to sign a reaffirmation on a vehicle, home, furniture, wedding ring, etc….  As long as you have secured debt in your Chapter 7 bankruptcy the lender may seek to have a reaffirmation signed so that they can collect the debt once the discharged is entered.  Secured debt is a financial obligation tied legally to an object such as your home, car, wedding ring, etc…  This legal obligation allows your secured creditor to take back the object in question if you do not pay your bill.  If the lender can take your house, your vehicle, your wedding ring away from you because you did not pay, you probably have a secured debt.  If this is your situation you need to consider whether or not to sign a reaffirmation agreement.

Let’s recap as to when you may wish to sign a reaffirmation agreement:

1. When you can financially afford to keep the secured item.
2. When it is in your best financial interest to keep the item as opposed to purchasing a new item.
3. When you want to receive ongoing updates on your credit report for paying on time.
4. When you have reviewed this decision with your attorney.

No decision is black and white in the law.  There are many factors to consider and this is why we strongly advise that you speak to a licensed and experienced bankruptcy attorney before proceeding.

Remember that knowledge is power and the more knowledge you have regarding reaffirmations the more power you will have to make an informed and sound financial decision about your future.

It is not uncommon that when one files for bankruptcy that they feel that their world comes tumbling down around them.  In fact the feeling can become so overwhelming that thoughts of suicide may be present because they view bankruptcy as a direct result of their failures.  When contemplating a response to the statement of  “What I am going to do now that bankruptcy has ruined my life?”  I came across Isaiah 61:3 as a response.  Isaiah 61:3 states in part,  for those who grieve a crown of beauty will be given instead of ashes, oil of joy will be given instead of mourning…  Every tough situation we face gives us the opportunity to grow and propel us forward.

Whether it is a fire that destroys an entire forest or a tornado that wipes out an entire town, beauty and hope can rise from those ashes.  There is no greater example of this than in Greensburg, Kansas where a tornado wiped out the tiny town.  The town swore that they would not let the storm get the best of them.  Determined, they rebuilt their lives and the town stronger than before. During the rebuilding people developed a renewed sense of faith along with a sense of humor to guide them through tough times.

So how do you deal with tough times such as filing for bankruptcy?  Do you let the situation overwhelm you and steal your joy or do you try and find an opportunity for change? Steven Curtis Chapman lost his five year old daughter from an accident that had no rhyme or reason.  In this devastation Steven gathered every bit of faith and  strength to not let this event steal his remaining time on this earth.  Out of this tragedy he produced an album Beauty Will Rise based on the premise that something can come out of devastation.

Does filing bankruptcy feel as devastating as experiencing a fire, tornado or losing a child?  For some it does or they think it does and therefore that is a valid feeling to me.  In order to change that overwhelming feeling it must be  identified and recognized.  Once this takes place we can show you how the devastation of  bankruptcy can give way to beauty in your financial life.  Perspective is a tremendous tool that can help you survive just about any situation.  But only you have the power to change your perspective on your life and your current situation.  You are in total control of  how you perceive a situation and how you are going to let it make you feel.

The fact is that bad things happen to good people everyday of the week.  I, nor anyone I know has the answer of why someone has to lose everything in a fire, or a tornado or why a child has to die.  What I do know is that it does happen.   Consequently those who look at the situation they are in and choose to find something that they can use to propel themselves forward are those who don’t just survive the situation but excel and refuse to be a victim.

Bankruptcy is not an easy decision to make and the steps you may have to take to receive that discharge may be even tougher than the decision to file.  However, if you are willing to make the tough decisions for the comparative short term you just may rise from the ashes of bankruptcy and receive the beauty of a debt free life.

Life is so short.  Don’t let the creditors devastate your life or steal your joy.  Change your perspective, get the facts about bankruptcy from a licensed bankruptcy attorney and take control of financial life.  It is never too late to change your view point of the glass being half empty to being half full.

Someone who has inspired me to view things differently is Bethany Hamilton.  The young surfer who lost her arm in a shark attack.  She too questioned about why bad things happened to good people.  In the end she found a positive note about the experience and uses it to inspire others.

Remember that knowledge is power and the more knowledge you have the more power you will have to change your perspective from your glass being half empty to being half full.