A Real World Class in Bankruptcy

I don't mention it too often but one of the main reasons I started living frugally was because I didn't want to get into another situation where I had to claim bankruptcy.

The process of claiming bankruptcy was eye-opening and frightening.

Frightening because the lawyer I hired to help me through this made it clear that some of my creditors may not want to be included in the bankruptcy and I would have to settle out of court with them, by that time I was worn down with phone calls I really didn't want to deal with them ever again; Eye-opening because of how easy it was, back in 1998, to get all of it wiped out and I owed no one but the lawyer. Of course that is before I truly understood the impact my credit score tanking would have on my future for getting any kind of credit again in the next 10 years.

I knew that I would have to re-establish credit because of the bankruptcy, but someone telling you this and then going through it seem to be world's apart. Through the process of trying to re-establish credit, I came across more rejections or 30% interest rates that it scared me about my future. Read the entire article.