Bankruptcy Blues
Blog by Cathy Jayne Pearce
The “ cons “ of Bankruptcy
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
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Cathy Jayne Pearce.
PO BOX. 2053, Glenelg SA, 5045.
Mobile ; 0415805626
Skype ; cathyjaynepearce
Twitter; http://twitter.com/#!/cathyjapearce
Website ; www.richestorags.com.au
Watch this ; http://vimeo.com/17428982
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