"Stigma of Bankruptcy"

I had never thought of considering bankruptcy, because there always seemed to be a stigma attached to it. Filing bankruptcy was something to be avoided at all costs. But had I known then what I now know about bankruptcy it would have improved the quality of my life years ago, and I would be in a much better financial state today.

I was on a debt reduction program and it was working well for me. I was on the brink of having one of my major credit card bills being paid off and then the pay off of my other debts would have accelerated and in about two more years I would have been debt free.

Unfortunately, I was laid off of my job and could no longer make the payment to the debt reduction program anymore. The day I got laid off I contacted my mortgage company, who I had been trying to work with before with no results, and was able to get a loan modification.

It is important to do this first before you file for bankruptcy, because it will be easier to reaffirm your mortgage debt during the bankruptcy.

I was amazed at how easy it was to go through the bankruptcy process. I had spent hours upon hours of searching for information on the web. Downloading forms and trying to determine my eligibility for bankruptcy and if I could actually do it. Instead of wasting all that time I should have just contacted the lawyer and started the proceedings right away.

I filed Chapter 7, it was the best choice for my situation because it wipes out your debt. I was able to keep my house and my car and personal possessions. The lawyer tried to steer me to Chapter 13 which is a payment plan and the state makes money on it.

But Chapter 7 was better for my situation as I felt I had already been on a payment plan with the debt reduction program and I just wanted a clean slate. I only had to see the lawyer twice and show up to court once and then I just had to wait a couple of months for my case to be discharged (which means the bankruptcy went through).

It was very easy and simple and I really wish I had done it years ago instead of doing a loan consolidation with a refinancing on my mortgage which only made matters worse for me.

Now after the bankruptcy I feel as if a heavy burden was lifted off of my shoulders. I don't have all the worries I used to have all the time about my debts and my financial state. I can answer the phone when it rings without fear of having to talk to a debt collector again.

If you are considering bankruptcy, I highly recommend it. It was the best thing I have ever done with regard to my financial health and, in my opinion, there is no longer a stigma of bankruptcy.

Contributed by Peggy from Tennessee