The decision to file for bankruptcy is a very important decision and one that requires much thought and prayer. In 2005 the bankruptcy laws were dramatically changed which made the impact of bankruptcy much bigger. No longer can you simply walk away from a mountain of debt, dust your hands off and start all over. Each state has different laws and I encourage you to discuss the matter with someone that understands the laws of your state.

If you do decide to file for bankruptcy you need to understand the long-term costs that will be around even after you have paid the lawyer. There are at least three other areas where a bankruptcy will end up costing you.

  1. In the workplace: In today’s economy, finding a job is no easy task. Filing for bankruptcy will make it even harder. Many employers will toss your application if they know you have filed for bankruptcy. We won’t get into whether or not it is fair, it just is. Also, if you need a security clearance for your chosen profession, a bankruptcy will make it difficult to get certain levels of clearance, and may even cause you to lose a clearance if you have one.
  2. Trying to purchase a house: If you think it is hard getting a loan today, try getting a loan within seven years of filing for bankruptcy. It may be harder that you think. “No problem, I’ll just rent”. You will find a similar situation trying to rent. The bankruptcy on your credit report will almost guarantee you get turned down.
  3. Insurance rates: Once again having the bankruptcy on your credit report is almost a guaranteed way to have your rates re-evaluated and very likely raised. Is it fair? Doesn’t matter. It just is.

If you are even thinking about filing for bankruptcy I strongly encourage you to talk to someone that has nothing to gain from your financial situation. That means don’t talk to a bankruptcy lawyer first. Second, really sit down and determine why you are where you are. Some financial situations are caused by conditions outside of our control. Most are because we can’t seem to understand that spending more than we make is a bad idea.

Bankruptcy is a completely legal thing to do, but it should be the last thing you do, not simply a way of cleaning up a mess that you created.


One of the characteristics that I find very attractive in people is the desire to do their best. I find that a lot of people are satisfied simply being better than the person working beside of them, instead of trying to reach their true potential. I think a lot of things go into creating an attitude of “good enough”. Unfortunately, it seems the goal to always do your best has gone by the wayside.

We even see it in the political arena. Recently when the news was heavy with discussions about the number of vacations that President Obama has taken the push back from the other side of the aisle was to remind us of the number of days President Bush spent at his ranch. What has happened to the desire to strive for perfection?

I came across an article over at CNN Money where one couple has decided to reach perfection. The perfect credit score that is. Apparently, the perfect credit score is 850.
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