So you think that bankruptcy is the end of your financial life? It doesn't have to be! READ ON!

The Scenario - Married couple in their mid-thirties with two children, ages 9 & 11. Both parents work and have two vehicles - one leased and one purchased. They have lots of credit card debt and live in a mobile home. They live from pay check-to-pay check and from crisis-to-crisis. They have no savings and things seemed hopeless! They wanted to buy a house, but that seemed like light years away.

The couple decided to file Chapter 11 bankruptcy and start over. The many myths, half-truths, misfortunes and fear told them that they would be dead in the financial arena for seven years. Wise and knowledgeable counsel was able to convince them to file the bankruptcy, develop a plan , allow themselves to be held accountable and focus on the goals of buying a house in three years!

The bankruptcy was filed, and discharged in four months, as planned. The next critical step was to replace the leased vehicle on which the lease was up four months out of bankruptcy. We were able to get a credit union to finance the purchase of the leased vehicle at 12.5% interest. Just four months out of bankruptcy, this was a minor miracle! But, unfortunately, four months later, the purchased vehicle gave up the ghost. It was necessary to replace that vehicle and it was accomplished through the same credit union at 10.5% interest.

The two vehicle loans helped to rebuild the credit report scores which made them credit worthy. From the commencement of the bankruptcy, the couple submitted to our money management program in which they received a weekly allowance and did not have to worry about paying the bills or saving money, as this was part of the plan and services they agreed to use.

The objectives were to restore credit, save money, operate on a budget, and agree that neither partner had the right or the authority to make a financial decision alone. Everything was shared and agreed on. Please CONTINUE our story on Rags To Riches - Page 2 | Return to Facts Page .