Thank you for visiting our website. This is the website where you can find resources on anything related to bankruptcy. If you are thinking of filing for bankruptcy protection, or you have already filed for bankruptcy, we have resources on this website that can help you along the way.
This website was started by Steve S who had recently gone through bankruptcy himself. After consulting with several other people in the same financial situation, Steve decided to create this website to help others who are in the same situation. Bankruptcy is not something that you should be ashamed of. Yes, you have made mistakes in the past causing you to file for bankruptcy protection, but now you have taken the important step of seeking help. Admitting that you have a problem is the first step to recovery, and we hope that the resources on this website can help you.
If you would like to see additional topics on any aspects of bankruptcy, please feel free to contact us.
I decided to add more information on what got me into financial trouble, and eventually down the path of bankruptcy. and then how I managed to get myself back on track. i believe if you are considering bankruptcy, you would want to hear from someone who has gone through it, and not bluffing about it.
It all started back in late 1990s when I have been 5-10 years out of college. Those were the days that anyone who invest in anything, they would seem to make some money because the economy was just so vibrant. If you invested in the stock market, you will see a return of 10%-20%. If you invested in real estate, you will see a year over year rise in the appraisal of the property. Since I have saved up a little bit of money over the years when I was working, I decided to purchase my first property in 1999. It was a condo that was affordable and I intended on living there for quite some time.
A couple of years went by, and I saw the value of my condo rise year over year. I had purchased the condo for $350 ,000 in 1999. In 3 years, the value of the condo has risen to $550,000 and I thought that I can do no wrong. I had purchased a condo in the midst of what many financial gurus called the real estate bubble. I had “defy” the odds and outsmart the gurus and was able to ride the real estate boom. I didn’t think I can do any wrong. I had attended some of the real estate seminars, so I “must” know all the pitfalls of real estate investing.
I got married by 2001 and by 2003, I decided it is time for my family to invest in another real estate property. Afterall, I am still making a “killing” from my first condo, so how can I possibly lose? I signed a contract to purchase another condo for $400,000 with no intention to actually live in it. The condo has yet to be built and I was hoping to sign a contract and sell this contract for a 10%-15% markup before actually taking possession of it at closing. In order to pay for this new condo to be built, I had to put up a 10% downpayment. I didn’t really have $40,000 to spare, and I ended up using a balance transfer check from the credit card. Granted it was a low interest rate of 2.9% APR, but I just incurred another debt that I didn’t really need.
As soon as I signed the contract to buy this new investment condo, I put the condo on the market. Almost a year gone by and the closing date of this new investment condo approaches and I have absolutely no takers on this condo. By 2004, the real estate market has cooled significantly and I was torn on what I should do with this condo. At the end of the day, since I could not sell the contract for this new condo, I decided to forgo my downpayment on the condo. So this was the first mistake that I have made. I have taken $40,000 loan from a credit card to pay for an investment property that didn’t work out. At the end of this debacle, I am left with a debt of $40,000 and growing (because of the interest charges).
As if this $40,000 debt was not enough, around the same time when I had to close on the investment condo, I signed a contract to buy a new house. In 2004, my family had grown to a family of 4. Still feeling invincible that I can do no wrong with any investment vehicle, I wanted to have a bigger house for my family. I intended to sell my starter condo and trade up for a house. By the end of 2004 when I had to close on my house, I still have not sold my starter condo. So for a few months, I was paying mortgage on both the condo and the new house. Eventually I did managed to sell the condo for $450,000. Even though I still made a little bit of money, some of the expenses that you never factored in eventually ate into the profit. The real estate agent’s fee of 6% which is $27,000, and the carrying costs of paying 2 mortgages for months ate into the profit also.
Years went by in the new house and we were doing decently well until the total collapse of the real estate market in 2008. The real estate market collapse also led to the eventual recession that US experience from 2008-2009. Many companies were in turn directly or indirectly affected by the recession. Unfortunately for me, my wife was laid off from her job due to the company downsizing from the recession. Without 2 income to support all the various expenses, we started to feel very financially strapped. I was able to pay for the mortgage for another 6 months without the additional income from my wife, but eventually I had to seccumb to the heavy financial stress.
I can either pay for the mortgage, or pay for the normal monthly expenses like feeding my family. After consulting with a lawyer through this Total Bankruptcy network, I decided to file for bankruptcy protection. It is probably the single most important thing that I could have done. There was no way that I could afford to continue paying for the mortgage while the value of the home is lower than the mortgage that I have on it, bankruptcy is my only option to get past this financial mess.
I am now living without debt thanks to the Chapter 7 bankruptcy. I have also created this website to help out anyone who might need bankruptcy assistance.