There are certain points in a person's life where a turning point can be felt and seen, both by the individual and those around them. For many it is when they graduate from college or have a child. For others, a major promotion or the death of a family member can change a person's life. Whatever the event is, the individual knows that from that point on their life will not be the same.
For Escondido residents dealing with unprecedented financial pressure, a turning point is often the decision to file for Chapter 7 bankruptcy. That decision is never an easy one. Recognizing the angst and emotional turmoil some people may feel when they file for bankruptcy, a recent article told the story of one woman who went through the process and wanted to share the details so others could know what to expect.
The first point made in the article is that the process of filing for bankruptcy actually costs money itself. For someone struggling with finances to begin with, coming up with the initial fee to begin the process can be tricky. However, the initial costs can be categorized as a short-term loss with a long-term benefit - a financial "squeeze" that will definitely be felt, but will ultimately lead to a fresh start.
After that, the article notes some of the finer points of a bankruptcy filing that many people may not know about. Requirements like taking credit counseling classes and attending court hearings - requirements which may be intimidating for some but are, for the most part, critical to the process of a long-term recovery for a person's financial situation. Every person's situation is different when going through the bankruptcy process, but for most people the end result is the ability to live within their means and begin the slow and steady march toward rebuilding their credit.
Source: lifehacker, "What You Should Know About Bankruptcy (from Someone Who's Been There)," Katherine McDonald, Nov. 13, 2013