TIP OF THE DAY - BANKRUPTCY

BLOG BY CATHY JAYNE PEARCE 

PRIORITISE 

The first thing you need to consider when you working out a plan to repay your debts is who needs to be paid more importantly . If your about to get your car repossessed and you need your car to in order to keep earning an income then it is obviously imperative that this debt be promptly sorted out . You will either need to hide your car or at least change the registration plates to temporarily prevent repossession or come to some arrangement with the creditor . Obviously accounts such as electricity and accomadation are other priorities - They usually have the upper hand all the time when it comes to collections . Ie No money no gas or no electricity . In reality a priority system is the best solution . There may be a tendancy however to repay those debts that are incurred with companies that are hassling you the most . Companies that use harrasement techniques in order to collect a debt , do so to cover up an otherwise inadequate collection department so dont be afraid to complain to the relevant authorities . By prioritising your debts you can then taylor a budget to live within your means 

Please go to my website www.richestorags.com.au 

Bankruptcy Blues

Bankruptcy Blues

Blog by Cathy Jayne Pearce

The “ cons “ of Bankruptcy

www.richestorags.com.au

I have also written an article on the Pros of bankruptcy

Filing for bankruptcy can leave you feeling pretty low. The discouragement associated with this type of even can last for a very long time, leaving the person involved thoroughly depressed. There are so many dreams that seem to disappear when something like this happens in life. Some people advocate for bankruptcy, but understand the downside of bankruptcy is equally important. Here are some of the overwhelming disadvantages of bankruptcy:

Job Trouble-

After filing for bankruptcy, some people find it increasingly more difficult to get a job. In fact, some specific industries won't allow you to work, if you have filed for bankruptcy. This is not only frustrating, but extremely discouraging. In troubled economy, life is hard enough, but trying to deal with the rejection of job difficulties on top of everything else, leaves many people feeling blue. You don't want to lose jobs because of your financial circumstances otherwise it just makes it worse .

Stays With You-

Bankruptcy stays with you. In the federal court, it stays on your record forever, and it will be on your credit report for up to 10 years. Having that kind of long-term negative information is nothing that anyone should be too eager to sign up for. Not only that, but the information is made public. Think twice about filing for bankruptcy, because you may not fully understand what you are getting yourself into and the information sticks with you for quite a while.

Depression-

The overwhelming process of filing for bankruptcy can leave some people depressed. There is no wonder, because it makes you feel like you have failed and you are a failure. Some people worry that they will never fully recover their credit and that this event is one that they will spend their life trying to bounce back from. Depression often leads people to commit suicide. This negative financial situation can begin an over- all dangerous downward spirals. Depression is not worth bankruptcy—no matter what.

In my book Riches to Rags , How to go Broke Successfully I discuss these topics in detail and although Depression and the other disadvantages of bankruptcy may seem overwhelming , it can also be overcome . I know I am a survivor of it !

Selling-

During bankruptcy, many people are forced to sell their belongings in order to help pay off debt. Not only is this emotionally draining, but very discouraging. Getting rid of those things that once made you feel at home, perhaps even your home, leave you feeling empty. Watching your car get towed away, your home taken over, and your things disappear is something that no one should have to go through if they can avoid it.

I have had my houses and cars repossessed as well and I tell my full story in my book Riches to Rags – How to go Broke Successfully  . Sometimes it helps to know others have gone through it and your not alone !

Moving Trouble-

Since bankruptcy stays on your credit report for so long, it can make moving increasingly difficult in some areas. Even if you are making more than a substantial amount of money, landlords may still be wary of renting to you based on your history. No one should have to be turned away from a perfectly good housing opportunity because of bankruptcy—especially if their financial standing is entirely different, but the information still remains on their record.

We have moved over Six times in Three years so I know what its like !

Expensive-

Filing for bankruptcy is costly and that is the last thing you need to be doing when you are already struggling with money—spend more. Some attorneys and solicitors  charge outlandish fees and there are also other fees involved. The cost is often in correspondence with how long your case takes, so given certain circumstances, you could be really spending a lot.

Trouble With Credit-

After going through the disadvantage of bankruptcy, it can be a very difficult process for some people to gain good standing credit back. It is also a challenge because failed credit reports pile up and the more of those that you have, plus bankruptcy on your record—leaves you at an over-all huge disadvantage. Gaining credit is enough of a challenge on its own, but dealing with this on your permanent record only makes it that much harder.

Embarrassing-

Lets face it, filing for bankruptcy is something that no one ever wants to do, or sees themselves doing, because it is flat out embarrassing. It leaves the person feeling exposed and discouraged. Their private life is made personal by record of their failure. There can be home loss or car loss involved—a public display of one's utter failure. Who could be feeling great about something like that? The financial burden of going through bankruptcy and the repercussions after—make the entire process a negative choice in every way.

My own  bankruptcy was very public with the press even running stories on me at the time .

These are some of the disadvantages of bankruptcy but are not necessarily things that cant be overcome , just things to consider that’s all !

Author Bio

Over the last ten years, I have learned a great deal.

Friends can become non-existent. Business colleagues can become foes. The media can quickly turn on you. And, riches can turn into rags.  Once considered the "bell of the ball" and on the "must invite" list of many an Adelaide socialite, I often found myself in the news and in demand, but how quickly I discovered that favor can turn into rejection.

For those of you who do not know my story, then I shall briefly recollect my past. The name Cathy Jayne Pearce -- my name -- was once associated with creating beautiful spaces. My business, Cathy Jayne Developments, took old and worn-out properties, renovated them, and gave them a new lease on life. I was once proclaimed as "Taking Adelaide by Storm" and as “seeing a city full of opportunities” as I renovated units, houses, and pubs, making substantial profits. As a lucrative property investor, I worked some 60 to 80 hours a week, wrote for Wealth Creator Magazine, had a regular column in the Advertiser’s Home Buyers Guide, and was listed in Business Review Weekly’s Rich List with a fortune of $19 million. My husband, Myles, and I were also noted as being Adelaide’s ‘Glam Couple’ of Australia’s ‘Very Rich.’ We rubbed elbows with Adelaide’s A-list celebrities, and we were considered as ‘Hot Gossip’ for all the right reasons.

I began building my property empire at the age of 23, and I watched it all begin to slip away in 2006 when the sale of my prized historical mansion, The Myrtles, went horribly wrong. Today, in 2010, I am insolvent, financially embarrassed, and declared bankrupt. My secret to success was perseverance, determination, and focus as well as the belief that I could achieve whatever I set my mind to. Unfortunately, the secret to my demise was my belief in other people. Now, it is about time, that I, Cathy Jayne Pearce, set the record straight on the happenings of my life, which saw me tumble from the top and slip into insolvency and to lay to rest those speculative tales of corruption and unfavorable associations, which the Australian media have forged within their blazing fires of judgment.

So much for the Fourth Estate and subjectivity as journalism has never been so rife with made up fables, twists of truth, and sensationalism. Hence, my book, From Riches to Rags, recounts events as they actually happened. The book takes a long, hard look at my life in its "heyday" and tells of how my fortune and popularity came to a crashing halt.

This book is not about delaying your debts and how to avoid making payment, as some journalists have stated, but it is about understanding insolvency and how to deal with financial embarrassment. And, it is about where you can find help when you have hit rock bottom and how to pick-up the pieces and hold your head high so that you can move forth in life. So many people lose their battle with insolvency because they lose their friends, are not able to find employment, and they can no longer live with their shame. Instead, they end their pain and take their own lives so that they no longer have to suffer.

From Riches to Rags has been written in the hopes that it will offer others, who are dealing with bankruptcy, ways of resolving the issues they encounter.

Contact

--

Cathy Jayne Pearce.

PO BOX. 2053, Glenelg SA, 5045.

Email ; info@richestorags.com.au or pearcecaj@gmail.com

Mobile ; 0415805626

Skype ; cathyjaynepearce

Twitter; http://twitter.com/#!/cathyjapearce

Facebook ; http://www.facebook.com/profile.php?id=100000248922937

Website ; www.richestorags.com.au

Watch this ; http://vimeo.com/17428982

Bankruptcy or bust

Bankruptcy or BUST

Blog  by Cathy Jayne Pearce

The Pros of Bankruptcy

I have also written a further article on The Cons of bankruptcy

www.richestorags.om.au

Have you been going through difficult financial times ? The economic climate is certainly seeing a lot more people go through bad financial circumstances and you may have considered bankruptcy .

 For those of you who do not know my story, then I shall briefly recollect my past. The name Cathy Jayne Pearce -- my name -- was once associated with creating beautiful spaces. My business, Cathy Jayne Developments, took old and worn-out properties, renovated them, and gave them a new lease on life. I was once proclaimed as "Taking Adelaide by Storm" and as “seeing a city full of opportunities” as I renovated units, houses, and pubs, making substantial profits.

As a lucrative property investor, I worked some 60 to 80 hours a week, wrote for Wealth Creator Magazine, had a regular column in the Advertiser’s Home Buyers Guide, and was listed in Business Review Weekly’s Rich List with a fortune of $19 million. My husband, Myles, and I were also noted as being Adelaide’s ‘Glam Couple’ of Australia’s ‘Very Rich.’ We rubbed elbows with Adelaide’s A-list celebrities, and we were considered as ‘Hot Gossip’ for all the right reasons. We had it all .. the Mansion , investment properties , holiday house, designer clothes , the nanny , the housekeeper and even a cook tendered to our every needs .

I began building my property empire at the age of 23, and I watched it all begin to slip away in 2006 when the sale of my prized historical mansion, The Myrtles, went horribly wrong. Today, in 2010, I am insolvent, financially embarrassed, and I declared myself bankrupt in 2009 after years of avoiding it . So why did I attempt to avoid bankruptcy ?  . For many reasons but the main one being the stigma I thought was attached to it ( amongst other things that are discussed on my website  )

Filing for bankruptcy might seem like an exhausting and embarrassing ordeal, but in reality there are many benefits to this situation. Instead of continuing to feel overwhelmed with the burden of debt, you can begin again. You have a chance to greatly improve your life in some very surprising ways. Here are a few benefits to bankruptcy that you might not have expected ….

Personally for me I found Bankruptcy a huge relief .  Here is why …

Be prepared

In my book Riches to Rags – How to go Broke successfully I discuss ways to prepare yourself for Bankruptcy . But be careful there are rules that you will discover only once you are bankrupt . ITSA ( Insolvency Trustee that governs the law of the Bankruptcy act ) don’t take to kindly to people who off load any assets and avoid creditors . But done the right way it can be a lot less painful being Bankrupt

No More Hiding-

Once you come to terms with your situation and file for bankruptcy, you won't have to worry about being hunted down by debt collectors. This can provide a huge relief for most people. The constant pressure of checking your phone, or that dreaded feeling when you reach for your mail, will melt away. Debt collectors can often leave people feeling borderline harassed, with incessant attempts to contact. Living under that kind of stress leaves people feeling debilitated. One benefit to bankruptcy is that the harassing finally stops. 

In my book Riches to Rags – How to go Broke successfully  I discuss strategies with how to successfully avoid debt collectors while you decided if bankruptcy is for you .

You Can Get Help-

You will be able to put together a game plan. Chances are, there might be lighter at the end of your tunnel than you bargained for. Filing for bankruptcy is not something that is lightly suggested. If your solicitor  is recommending that you file, then there is probably a very good reason. So, stay strong and find out what comes next. Consider talking to more than just a solicitor  in order to get a better over-all understanding of your situation. There are always different perspectives and it may benefit to hear more than one. Learn everything you can about Bankruptcy . There are a lot of recourses out there !

Set Free-

It might be overwhelming to think of losing your house, car, and or other things, but holding on to those things would only continue to damage your credit record. And cause stress . Think of the benefits of not having to worry about the maintenance on both a car and a home. So much money is poured into keeping our cars running and our homes in working order, with those things no longer hanging over your head, you are free from those sources of worry. Renting rather than owning is not such a bad thing and you can still own a car . In fact this is the first car I have actually owned that isn’t owned by the bank . Now that has to be a relief in itself ! But it need not be like that either Bankruptcy can actually save houses , as well as cars . If you can service them they may be opportunity to keep them .

Fresh Start-

Filing for bankruptcy gives you a chance to begin again. You can start by repairing your credit, slowly—but deliberately. You can also consider this fresh start as a time to refocus and really come to understand what it is you want. Sometimes by losing, we find what it is we truly need. This time of life can be a very emotional, but healing phase. Bankruptcy can certainly save Lives

Credit Card –

You might be feeling discouraged when all those enticing credit card offers come pouring in through the mail and you seem to be having the hardest time getting approved at all, but this is a blessing. By not being able to obtain all of those unnecessary credit cards, you are learning how to better manage your finances. This is one of the many great benefits of bankruptcy.   Now days you can organize a debit card anyway which means you have to have the money before you spend it !

Wipes debts off

After you have served your period of bankruptcy all of your debts have been wiped of and you are discharged ( the time period  varies in different states and continents )

New Loans-

Eventually over time you will become eligible for a new loan. This is exciting, because that means you are not branded for life from bankruptcy. In the mean time, you can dream, plan, and better manage your money, so that when that day comes—you will be more than ready. Perhaps you were meant to walk down that road, to discover the benefits of bankruptcy. Learning how to manage your money well is a lesson that will aid you, for the rest of your life.

No more Court Appearances

If the situation has got so bad that creditors are taking you to court once you have declared bankruptcy Creditors can not keep pursuing you in court ( except in criminal matters of course )

In my book Riches to Rags – How to go Broke successfully I share my ordeal and experience with you . I had 11 court cases during 2008 and 2009 before I declared Bankruptcy and could have saved myself a lot of stress .

Build Savings-

Now that you are out from under that overwhelming burden of debt, consider the areas of your life that you want to save. Now is your chance to start saving for college, the new car, or even retirement. The possibilities are endless. You might consider coming up with a more stable plan for saving, but cutting back on your unnecessary spending and trying to pay for things in cash as often as possible. This will only further help you along as you build up your savings. Now that you have experienced a loss in some ways, you will most likely have a greater sense of appreciation for the things that you now have in life—like your savings. If you had never experienced the effects of bankruptcy, you may have never fully understood its benefits.

You Can Still Earn money

In Australia , and because I have Children – I can still earn $50,000 per year ( check what you can earn ) and any amount over that I share with the Trustees and creditors 50 / 50 . So I can Earn as Much as I want

Life Still Continues ..

There are ways and means to continue living during bankruptcy . I discuss these in my book Riches to Rags . How to go Broke successfully  !. Access to superannuation , trust funds , and employee relationships are all things that can be employed . You can still live a good life and I will be writing some further articles of “ Budgeting is the new black “ ( written by a bankrupt ) and clever ways to have a champagne lifestyle on a beer budget . If I can you can …. With permission from your trustee you can still go overseas and live pretty much as normal !

Riches to Rags . How to go Broke Successully

The Global Financial Crisis and the high rate of foreclosures, job loses, and economic downturn, has placed increasing pressure on many households financially.

Thus, From Riches to Rags is being written in order to offer others who are dealing with the possibility of bankruptcy, ways of resolving the issues that they encounter. Overall, this book allows the reader to understand that they are not alone in their battle, and that losing your wealth can happen to anyone, no matter how big, or small, their bank balance, or asset accumulation is.

Riches to Rags  recounts events as they actually happened. The book takes a long, hard look at my life in its "heyday" and tells of how my fortune and popularity came to a crashing halt.

You Can Still make it again !

Plenty of people who have gone bankrupt go on to make it again …

It is about understanding insolvency and how to deal with financial embarrassment. And, it is about where you can find help when you have hit rock bottom and how to pick-up the pieces and hold your head high so that you can move forth in life. So many people lose their battle with insolvency because they lose their friends, are not able to find employment, and they can no longer live with their shame. Instead, they end their pain and take their own lives so that they no longer have to suffer.

From Riches to Rags has been written in the hopes that it will offer others, who are dealing with bankruptcy, ways of resolving the issues they encounter.

• Seek Independent advice before considering filing for bankruptcy
• I have written a separate article on the Cons of Bankrupcty that can be viewed on my website

Article Author Bio

Cathy Jayne Pearce owned more than 30 companies in Australia, was listed on BRW’s rich list with a wealth of $19 million, and was considered as the South Australian property princess during the 1990’s, as she redeveloped hundreds of run-down units and gave them a new lease on life. Today, Cathy’s businesses are insolvent and Cathy has been declared bankrupt, however, Cathy considers her first-hand knowledge of business and its collapse as one of her greatest assets. Cathy Jayne Pearce is the author of ‘From Riches to Rags’, an autobiographical account of her journey from riches to rags, which offers hints, tips, and advice on everything life has thrown at her. For more information on Cathy, or her book, please visit: www.richestorags.com.au

 Contact:

Cathy Jayne Pearce

Author of From Riches to Rags: How to Go Broke Successfully

PO Box 2053, Glenelg, S.A. 5045

Phone: 0415 805 626

Email ; info@richestorags.com.au or pearcecaj@gmail.com

Skype ; cathyjaynepearce

Twitter; http://twitter.com/#!/cathyjapearce

Facebook ; http://www.facebook.com/profile.php?id=100000248922937

Website ; www.richestorags.com.au

Watch this ; http://vimeo.com/17428982

Insolvency and depression

Post 1

What? Insolvency and Bankruptcy, and Your Mental Health

“She might have the weight of a criminal charge and civil claims on her shoulders, but Cathy Jayne Pearce still has a strut in her stride.” ~ The Advertiser, March 2009

For many, it is much easier to point the finger of blame, rather than offer their understanding.

In all the negative publicity that you will read about me -- and there are many articles that span across the last 4-5 years -- there is not one article that discusses how bankruptcy and insolvency affects a person’s state-of-mind. You also will not find any information on how to deal with bankruptcy and insolvency, as in, where to find help, whom you can possibly turn to for advice, and how to dig yourself out of the dirty-great big financial hole that you have mistakenly dug for yourself.

Now, before you point the finger of blame at me, and say, “Hey Cathy, you got yourself into this mess, then it should be you that gets yourself out.” Why don’t you consider how it feels to be in my shoes, and think about all of the other high-profiled business people, personalities, celebrities, and directors of corporations that have found themselves in a similar situation to me?

Walt Disney declared bankruptcy in 1923, Larry King in 1978, Francis-Ford Coppola in 1990, Kim Basinger in 1993, Donald Trump in 1992, 2004, and in 2009, AMF Bowling Worldwide in 2001, Converse Inc., in 2001; Kmart Corporation in 2002, and the Reader’s Digest Association in 2009, just to name a few.

Honestly, how would you feel if you were constantly in the limelight with the media hounding you and private investigators following you, whilst you were trying to make sense out of your mistakes and understand where you went wrong? Especially, when these mistakes had cost you and your family their livelihood, and left you without a home, your lifestyle, and your most prized possessions. And, in addition, you had cost others money, their investments, which many had put high-hopes on making a profitable return.

Tell me how would you feel?

Personally, I felt depressed. I lost my self-esteem and had an overwhelming sense of failure. I sought out comfort foods, had many a sleepless night, and cried more times than I care to admit. In fact, the only thing that I honestly felt that I had left was the love of my husband and children, which are undoubtedly unconditional.

When your face insolvency and bankruptcy you get this crushing feeling of hopelessness, as if, nothing will ever be the same and that there is no hope of recovery. But, I now know that there is hope, providing that you know where to find it.

Your first steps to overcoming bankruptcy, is to get your mental health under control and to defeat depression and the anxiety. This can be accomplished by:

1. Visiting your health professional and discussing your situation, so that they can assess if you need any medication to cope with the stress. This may be as simple as sleeping tablets so that you can get a good night’s sleep.
2. Making sure that you maintain your health and fitness levels. This can be achieved by eating well, exercising regularly, and taking time-out to enjoy those little things that you never had time for before, such as reading and other past-times and hobbies.
3. Focusing on changing your financial situation. Learn to stop blaming yourself for the situation you are in, and start looking for ways to change it.
4. Seek out likeminded people. Look for support groups on-and-off-line that are comprised of others, just like you, who have experienced bankruptcy, so that you can learn how to rebuild your life, and share your story.
5. Speaking to a councillor about your anxiety and depression, so that you can move on and leave the past behind you.

And, please remember, that if you are feeling lost, alone, and are in despair that there are organisations that can help you immediately, such as Lifeline and Beyond Blue in Australia. If you reside overseas, please contact your local depression advice centre, or type ‘depression support groups’ into your web-browser to locate an online group where you can talk about your depression.

“Today I am bankrupt and financially embarrassed, tomorrow I strive to repay my debts and learn to once again hold my head high.” Cathy J. Pearce, Jan2011

Post 2

Where? When Your Friends Desert You Where Do You Go For Help?

“In one of the alleged phone calls, Mrs Pearce is said to have threatened to hire a hit man if she did not receive the money she claimed she was owed.” ~ The Advertiser, June 2008

Friendships are forged on trust, but what trust can you have when allegations are continuously being made?

Whether you voluntarily file for bankruptcy or it is forced upon you, the one thing that you never stop to consider is how this will affect your friendships. Undoubtedly, events in your life, such as bankruptcy are bound to sort out your genuine friends from those who were just there for the good times.

How do I know this? Personally, I have lost many friends. In fact, today, after my bankruptcy, I can honestly say that I have very few friends. Most of them disappeared as soon as word got out. And, those that hung around for a little longer, I feel remained just to make sure that the rumours were true, and once they got confirmation, they were gone.

The friendships that I still have today are those that dearest, and cherish. I know that these people are not just interested in my lifestyle and that they are not riding on my coat tails. Instead, they are genuinely interested in me, and my family’s wellbeing, and they sincerely want to see us get back on our feet and regain our lives.

The funny thing is, through all of this I have learned a great deal about human nature, and I have grown-up and left that naïve, carefree girl, who was once the property-developing princess called Cathy Jayne Pearce behind.

So, I hear you ask, just where do you find help when your friends desert you in your hour of need?

For me, the answers are as follows:

• Turn to those that you trust the most – your friends may have deserted you, but your family may still possibly be willing to talk to you. It just depends how close you were to them in the first place. However, if you never had a strong rapport with your family, then don’t turn to them after you have been declared bankrupt, as you may discover that they reject you.
• Take control of your situation – in order to overcome your self-doubt you need to take control and responsibility of your situation, stop blaming yourself and feeling hard-done-by, and start learning more about how to solve your problem. Contact your local government and find out about how you can regain financial control over your life, and recover from bankruptcy. Ask these authorities about subsidies and if you are entitled to them, and help yourself to recover.
• Use online resources – search online for bankruptcy organisations and groups that are in your country, or that have up-to-date information on bankruptcy in your country. Read the material, and if needed, print-off any documents that feel relate directly to you. Start building yourself a self-help file that will enable you to develop and grow as a person, as you resolve your financial issues.
• Contact a debt educator – if you have no idea where to start in order to resolve your financial strife, or if you feel that you may continue to live beyond your means, then, it may be a good idea to consult a debt educator. These people will help you to understand where you went wrong financially, and then they will help you to learn new and effective ways to reduce your debt, so that you do not end up in the same situation once again.
• Contact a councillor – if you find that you are having difficulty coping, then do not be afraid to turn to a professional for help. If you don’t have friends or family that you can talk to then it is very important that you talk to someone, otherwise you risk having an emotional breakdown and experiencing depression.
• Make new likeminded friends – don’t be afraid to make new friends that are willing to share your experiences with you. While, most people will judge you, you will discover that there are handfuls that are very open-minded and willing to listen. Plus, you may even find other people who have been through a similar experience to you and who are willing to share their experiences.

“The friends that I have today are not the friends that I had, but the new friends that I have made, they know the new, improved me, and love me for who I am, not what I have.” Cathy J. Pearce, June 2010

http://www.richestorags.com.au/