by Jenna
Now that I’ve put some distance between the time of my bankruptcy, I can see very clearly that there were certain attitudes, certain actions, that led me down that path.
Some of these attitudes I’ve managed to change, and some of them I still struggle with.
Bankruptcy and Time Management:
Before Bankruptcy:
I don’t have time to deal with my bills / budget / debt right now - Prior to my bankruptcy, this was my favorite excuse for ignoring my finances. I was busy, I have a family to raise and support, I was working, I was going here or there. So, the bills usually got stuffed into the bill box to be dealt with at a later time.
After Bankruptcy:
I make time to deal with my bills / budget / debt - When the bills come in, they get opened, and the due dates are marked on a calendar. I take time every two weeks to work out a current budget, and include any bills that I know are due. Now that I’ve declared bankruptcy, I have to pay my bills. That safety net caught me once, when I needed it, but it is gone. If I don’t keep up with my bills and my debt, I will be facing collections and garnishment all over again. I don’t want to end up back where I started, I want to move forward.
I don’t feel like I have tight enough control of my money to automate my utilities yet, because I am afraid of bouncing my checking account. We do have overdraft protection through our savings account, but until I can be certain I won’t need it, I am not going to take that step. I want to move forward slowly so that I get a good grasp of the basic financial skills.
Bankruptcy and Income:
Before Bankruptcy:
I don’t have the extra money to pay this bill, so I will deal with it later - What I found out through my bankruptcy was that I did not make enough money to support myself. My regular bills – utilities, food, rent, etc. exceeded my income. So I went from month to month paying off whatever was about to be shut off.
After Bankruptcy:
I’ll find a way to earn more so that I can pay this bill as soon as possible - This was a huge shift in my attitude after the bankruptcy. I used to give up right away, by saying “I can’t pay this bill!” Now, I ask myself what I need to do to get that bill taken care of and off of my back. I began looking for ways to pick up extra hours at work, took on a second job… finally got my head above water. The bills are non-negotiable. My salary is completely up to me.
Paying Bills Before And After Bankruptcy:
Before Bankruptcy:
Well, what can they really do to me if I don’t pay anyway? I don’t own anything of value! - Prior to my bankruptcy I was pretty much in the proverbial “blood from a stone” scenario. I figured, I had nothing to lose, so I was protected just by virtue of that. No home, a 20 year old car, etc. What I found out was that there is plenty “they” can do to you, whether you own anything or not. They (my creditors) sued me in court, garnished my wages, called everyone I knew looking for me, and made my life terrible in a thousand ways.
After Bankruptcy:
I have decided that I want to own things of value - Sometimes it can be liberating to feel like you have “nothing to lose”. But the truth is, some day I want to have something worth protecting. I want a home of my own, a car that is less that twenty years old. I want investment accounts, and a retirement. I want a real sense of security, and not a fear of bill collectors repossessing or putting a lien on what I own.
Bankruptcy and Health Insurance:
Before Bankruptcy:
I’m Young, I Don’t Need to Pay $300 a Month For Health Insurance - Not carrying medical insurance was the largest reason for my bankruptcy. Several kidney stones, a surgery, and four ER visits later…..you know what? I need insurance!
After Bankruptcy:
I will carry plenty of medical insurance until the day I die - That includes not only health insurance, but dental, and life insurance as well. If I have to pay for that out of pocket, then I will. It is essential. I can’t help that the medical and pharmaceutical industry is messed up and outrageously priced. But I can take care of myself and my family so we aren’t causalties of the system.
Bankruptcy and Credit Cards:
Before Bankruptcy:
I’ll take any credit I can get thanks! – Before Bankruptcy I applied for credit cards regularly, and any that I was approved for I typically maxed within a month or two of getting my hands on them.
After Bankruptcy:
I am extremely careful about credit – Since the bankruptcy, along with all of my delinquent medical bills pretty much devastated my credit rating, I am now careful about what I apply for – and how I use it. Now, I understand that applying for credit can lower your credit score. I also understand that using too much of my available credit can hurt my credit score. I maintain three credit cards. One secured, and two unsecured. I never charge more than 25% of my available balances (which are low) and I make my payments on time no matter what. Over time, this will help my credit score recover from my bankruptcy and previous charge offs.
I wish that I could say that all of these changes happened overnight, as soon as I declared bankruptcy. But they didn’t. They were a result of trial and error, hard work, and taking the time to educate myself about credit and finances in general. I am proud to say that I no longer have a bankruptcy attitude. Instead I believe I have a success attitude. I faced the worst financially, and I am recovering from it. I am going to do everything in my power to never put myself into that situation again.
Have a question for us? Leave a comment below!
Keep Reading:
This entry was posted
on Monday, November 24th, 2008 at 09:45 and is filed under Bankruptcy FAQ.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
December 3rd, 2008 at 06:55
[...] shares lessons learned from bankruptcy in Do You Have A Bankruptcy Attitude? posted at Ask Mr Credit Card’s [...]
December 7th, 2008 at 15:58
[...] Mr. Credit Card has a post written by someone who has lived through bankruptcy in Do You Have a Bankruptcy Attitude? This post is an eye-opener as I don’t know anyone who’s been though the process. I [...]