The Bankruptcy Support Center

Every person is unique, but when you face a challenge like working through bankruptcy, you are never alone. Countless men and women have faced the exact same problem and have survived and thrived. The following guide is designed to help you navigate your journey through bankruptcy with the best information and resources that helped other survivors when they faced the same challenge.

TSC has scoured the Internet and assembled links to the very best resources about bankruptcy: Articles, blogs, forums and tools that can help you make better decisions and take action to overcome the range of emotional and financial challenges that you face.

As you’ll see, we always welcome your ideas and suggestions to make this Bankruptcy guide even more helpful to survivors like you.

 

JUST FOUND OUT

Survivors Say: Best Resources for Bankruptcy

• BankruptcyAction.com  Up-to-date answers to FAQs about Chapter 7 and Chapter 13 bankruptcies.
• The Bankruptcy Site  A comprehensive look at bankruptcy, potential alternatives, the process and legal assistance needed.
• Personal Bankruptcy Information  Details ranging from state and federal exemptions to bankruptcy alternatives.

The Big Picture

 Generally bankruptcy results from the inability to pay creditors. Oftentimes it serves as the only remaining lifeline for an individual, family or business swimming in a  sea of debt. In the United States, there are several methods of filing for bankruptcy. Some methods include the liquidation of non-exempt properties, while others allow you to hold onto your property as part of a payment agreement that may take place over several years. One of the main purposes of a bankruptcy filing is to give a person hopelessly burdened with debt a fresh start by wiping out his debts. It should be a last option because your credit record will be affected for a long while, yet sometimes it is the only feasible option to work toward a fresh start.

About.com: Financial Planning - Eight Warning Signs That You May Be Headed for Bankruptcy

Your Bankruptcy

Filing for bankruptcy more than likely wasn't due to a problem that occurred overnight. Bankruptcy generally develops from years of overspending, major medical expenses, a divorce or a business that is losing money. However, the desire to get out of debt isn't reason enough to file for bankruptcy. Also, the government recently passed new laws with new standards for bankruptcy filing.

• CNNMoney.com: President Signs Bankruptcy Bill
• GoogoBits.com: Understanding Bankruptcy Laws: How Recent Changes Will Affect Your Options

Your World

Like most financial struggles, bankruptcy can cause an undesired amount of stress that will greatly affect your emotions. The best way to deal with financial aspects of bankruptcy is to approach it calmly and logically.

Telling friends and family, especially a spouse and children, about bankruptcy can be an difficult experience, but be straightforward and honest, and allow them to help you in any way they can. Also, you need to understand that if you share assets with anyone, they may be affected by your decision.

• Bankrate.com: Your Bankruptcy Will Hurt Spouse's Credit
• DebtHelp.com: Three Effects Bankruptcy Could Have on Your Children
  

Bankruptcy Myths

• Filing for bankruptcy will offer a fresh financial start.
• Filing for bankruptcy can cost you your job.
• You can't file for bankruptcy if you have a job.

Information and Recommended Links for Survivors

Survivors say these are the best guides for exploring your options: 

• MSN Money: Your 5 Minute Guide to Bankruptcy
• Bankrate: Debt Management Basics
• NOLO: Bankruptcy Resource Center
  

 

What Should be Done About Bankruptcy

First, make sure you have exhausted all possible options and alternatives to bankruptcy before filing. Then make sure you have picked the correct filing option for your financial situation.

• Personal Bankruptcy Information: Bankruptcy Alternatives
• NOLO.com: Decide If Bankruptcy Is Right For You

Learning to budget is a valuable skill; adhering to a budget is even more impressivel. Taking the time to create a budget will help encourage you to stick to it.

• MSN Money: How to Build Your First Budget
• About.com: Financial Planning - Budget Worksheet
  

Keeping Property During Bankruptcy

It's understandable that you want to keep everything of importance to you when filing for bankruptcy. Exemptions vary by state, so check which apply in your state.

• Lawyers.com: Property Exemptions in Bankruptcy
• Personal Bankruptcy Information: State Exemptions
  

Chapter 13 allows a debtor to keep his property and pay debts over time, usually three to five years. On the other hand, Chapter 7 focuses on "liquidation," the sale of a debtor's nonexempt property and the distribution of the proceeds to her creditors.

• USCourts.gov: Chapter 13 - Bankruptcy Basics
• USCourts.gov: Chapter 7 - Bankruptcy Basics

People Who Can Help During Bankruptcy

A financial planner can offer sound financial advice that can help you get back on track. If you don't know a lot about finance or where to put your money, consider what a financial planner might offer you. A bankruptcy attorney can advise you on debt relief options and guide you through the bankruptcy filing process.

• US Securities and Exchange Commission: Financial Planners
• FindLaw.com: Bankruptcy Lawyers By Location
  

The Emotional Roller Coaster

Dealing with bankruptcy can be a mental challenge and financial burden. Oftentimes, it will add a lot of unwelcome stress to your life. Educating yourself about bankruptcy can help you better handle the challenge. There are also online forums you can go to for advice from others who have been in your situation.

• AOL Message Boards: Filing Bankruptcy
• Motley Fool: Discussion Boards - Personal Finances
  

Books That Survivors Found Helpful During Bankruptcy

• Credit After Bankruptcy: A Step-By-Step Action Plan to Quick and Lasting Recovery after Personal Bankruptcy by Stephen Snyder
  
• Surviving Personal Bankruptcy: Your Guide to the Personal, Legal, and Financial Issues by Nora Raum
• The New Bankruptcy: Will It Work for You? by Stephen Elias
  

Information for Co-Survivors

How you can help

• Promote financial responsibility. For example, instead of dining out on a regular basis, offer to cook dinner at home, and make plenty for leftovers and lunch the next day
• Help your friend or family member by doing some of the “grunt work.” Research online to find the best options available to rebuild credit, avoid foreclosure, etc. This will help alleviate the stress that comes with financial woes.
• Steer conversation away from the issue of bankruptcy. If he wants to move on, you can help by focusing both of your energies and efforts toward the future.

What to Say

• “You can turn this negative experience into a positive result.”
• “Many people have experienced bankruptcy, and have enjoyed a full financial recovery.”
• “If you need any help in budgeting and balancing finances, we should sit down and crunch some numbers.”

What Not to Say

• “A bankruptcy? Oh, you'll never recover from that!”
• “Your credit will be ruined after you file for bankruptcy.”
• “You should have known that your poor financial habits would lead to something like this.”

How to Build a Support Network

• Set up Your TSC Co-Survivor Profile
• Create a support group for your loved one
• Interact, provide updates and share your bankruptcy experiences

Helping a survivor deal with day-to-day challenges

• Work – Many are concerned that filing for a bankruptcy could cost them their job. Fortunately, filers are protected from employee discrimination. 

Bankruptcy Law Network: Can I Lose My Job If I File For Bankruptcy?

• School – Bankruptcy can often make the student loan process a difficult one, but many government loans will still be available to cover the vast majority of educational costs.
  

Bankrate: Getting Student Loans After Bankruptcy

If you approach bankruptcy with the right attitude and a genuine desire to become financially responsible, you'll look back on this experience someday as an educational one. Not only will you learn how to avoid this predicament in the future, you'll also have the knowledge necessary to help others through bankruptcy -- or help them avoid it completely.

Recovery and Recurrence

When suffering from a bankruptcy, it's necessary to go back to square one and reorganize the way you do things. Ultimately, you want to rebuild your financial house, beginning with the foundation, and make sure you keep you credit record clean.

 

• Suite 101: Life After Bankruptcy - How to Regain Financial Credit 
• NOLO.com: Rebuilding Credit FAQ
  

There's a no-nonsense approach to bankruptcy that has to do with attitude – taking a tragic event and creating a positive outcome. Learn to manage your personal finances, from planning a budget to doing your taxes correctly.

• MSN Money: Bounce Back Fast After Bankruptcy
• CNN Money: Money 101 - Financial Advice & Lessons Made Easy
  

Giving Back – Helping Other Survivors Through Bankruptcy

• Create a TSC Profile and begin interacting
• Share your story – How you found your way out of your bankruptcy scenario
• Become a mentor for another bankruptcy survivor

Your credit could become so damaged that you'll experience the repercussions for years. But bankruptcy doesn't have to ruin your life. Continue to work toward rebuilding your credit through financial responsibility and you will eventually see light at the end of the tunnel.

A worst-case scenario, however, might require another bankruptcy filing. The laws are strict in regards to a second filing, so you'll want to become familiar with all of your options, including liquidating all assets to reduce your debt.

BCS Alliance: What Happens After Filing Bankruptcy