"Bankruptcy Gives You Another Chance"

I would like to share my experience of personal Chapter 7 bankruptcy. Hopefully it can give reason to see there is hope and a better outcome on the other side once your own bankruptcy is official.

Like nearly everyone, I didn't intentionally set out to make poor decisions that would lead to bankruptcy, but I did make poor decisions. Some people didn't do that, they simply encountered misfortune, whether medical misfortune, job loss, divorce or something else.

I had a double financial whammy. I did well in the stock market in the late 1990s just like a lot of other people. Being a newbie to the market I thought I knew what I was doing; I didn't realize I was simply the beneficiary of a bull market. So when the market crashed shortly thereafter I was not prepared to protect my gains, instead I kept trading and trading away my money down to almost nothing in the midst of a horrible market crash.

Simultaneously, I was gambling on horses. Yeah, real smart, right? The losses mounted there, as well. Big surprise, huh? Now back then, it was easy to fund such stupidity. You may recall receiving multiple credit card offers in your mailbox every week, for some of us nearly every day.

The banks were practically begging people to sign up, no matter what your financial condition. In contrast to today (2010), I have received exactly one unsolicited credit card offer in the last 12 months.

Unfortunately, when you are underwater financially and your financial enablers are more than willing to fund you, it is easy to keep trading and gambling hoping to hit big and solve your financial trouble.

Well, no one should be surprised that I was only digging myself a deeper and deeper hole. I was over $60,000 in debt by the time I came to my senses. I was very depressed and anxious, and sleep was difficult.

Yes, I was deeply embarrassed at resorting to filing bankruptcy, but it was not only the only way out, it was also a good way out.

Today, there is no more gambling on the horses. I don't go near the races. I do buy and sell stocks, but now I actually know what I'm doing, as opposed to 10 years ago. The stock market had provided me with some hard lessons, and I paid attention.

Most of all, I keep myself on a very tight budget. With the lousy economy of today, I think everyone should, as none of us know when the job axe will fall on us. I have no credit card debt, no car loan, and I rent. I've even managed to set aside an emergency fund.

Am I extremely well off financially? No, but I'm not in bad shape either. And I sleep well at night. There's also no longer any depression or anxiety.

If you're too embarrased to consider bankruptcy, I suggest that you think again. While bankruptcy laws may be a bit tougher now, it is still a good way to give yourself another chance.

Contributed by Larry from Ohio