Filing Personal Bankruptcy
Approximately 1 in every 78 households file Chapter 7 or 13 each year. This number represents on a small fraction of families struggling to pay large debt loads. For too many people, remaining current with monthly obligations delays an inevitable conclusion while true financial independence dims into a distant dream. To become solvent and improve net worth every year, decisive action is necessary.
This trend must be reversed because positive cash flow is essential. Today, each individual may select from a wide range of options. While filing personal bankruptcy is only one of these options, it allows each individual to pay debts according to their ability and discharge excessive debt in both Chapter 7 & 13. Of course, no one wants to file, yet more importantly, future success and financial stability may depend on the discharge of excessive debt and interest obligations.
The purpose of filing personal bankruptcy
Total income, less total expenses, results in disposable income. If disposable income is positive, then regular investments over time accumulate to create financial independence. If disposable remains neutral or negative, true financial independence becomes impossible. Clearly, filing does nothing to increase income, yet should reduce expenses to a manageable level, which in turn, allows all expenses to remain current while investing disposable income. Over time, using sound money management techniques, disposable income and investment income easily build upon one another to multiply into significant net worth.
This simple concept of monthly savings and investment is the only way to legitimately earn independence. The snare is also familiar - short term comfort overshadows long term success. Each individual must reach a point of personal decision. Once you realize that accumulating net worth is far better than one more month of delay, your options become almost limitless. After discharge, few debtors ever file again. The most successful filers use the experience for their advantage, and enjoy exploring new opportunities to create stability, independence and personal financial growth.
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