Bankruptcy: Survey Helps You Decide

2008 U.S. bankruptcies: 1,117,771.

You are not alone if you are contemplating bankruptcy.

Complete the following Debt Dance survey. Its score will help guide you as to whether you need to file, if this is the right time to file, or, if you should be looking at other alternatives. This is informational only.

If you are considering filing bankruptcy it is imperative that you speak with an attorney to better evaluate your unique situation.

Take a moment and write down your financial and life dreams. Attach an approximate dollar figure to them. For example:

Start a petting zoo business. $25,000.
Invest for the kids’ college. $100,000.
Buy a new house for cash. $350,000.
Pay off all unsecured debts. $35,000.
Have an emergency fund of $15,000.

THE DEBT DANCE BANKRUPTCY SURVEY

Be honest and this tool can help you clarify why you should or should not seek legal counsel.

1. How are you using credit now?

a. I’m using one card to pay the others every month. I’m about to max out.
b. I use my credit cards a lot, for extra things (like clothes) and for emergencies.
c. I use my credit cards several times per week for small things, just to help me get through until payday.
d. I rarely use my credit card.

2. How have you tried getting rid of this debt?

a. I haven’t.
b. I’ve cut way back on expenses.
c. I’ve taken a second job.
d. I’ve tried negotiating with the credit card companies.
e. I’ve tried debt consolidation/settlement.

3. How many years do you have before you plan to retire?

a. 20 or more
b. 10 to 19
c. 5 to 9
d. Less than 5

4. If you added an extra amount to your monthly credit card (and other) payments (the amount is up to what you feel you honestly can afford,) and stopped getting into debt, would you be able to pay them off in 3-5 years? (debt reduction calculator)

a. Yes
b. No, it would take about 7 years
c. No, it would be more than 7 years

5. Considering your age and potential income, look at your dream goals. With the current debt you have now how much money could you funnel into these goals within the next 3-5 years? (In our example we would add the budgeted approximations, which totals $525,000, the 3-5 year one-third target would be $175,000.)

a. 10% or less
b. 10-30%
c. 30-50%
d. 50- 70%

6. How devastating is your debt to you now?

a. I feel suicidal, hopeless. My relationships/marriage is about ruined. I am using drugs/alcohol to cope.
b. I fight with my spouse/family about money all the time. I worry all the time and have trouble sleeping.
c.I keep struggling. Sometimes I feel hopeful but I get very discouraged.
d. I don’t think about my debt very much.

7. Are you in jeopardy of losing your house and/or car?

a. Yes
b. No

8. How much unsecured debt (e.g. credit cards, signature loans, medical bills, student loans, etc.) do you owe?

a. Less than $10,000
b. $10 to $20,000
c. $20,000 to $30,000
d. $30,000+

WHAT THE ANSWERS MEAN:

1. a. 5

1.b. 4
1.c. 3
1.d. 0
2. a. 0
2.b. 3
2.c. 4
2.d. 4
2.e. 5

3.a. 0
3. b. 1
3. c. 3
3.d. 5
4. a. 0
4.b.3
4.c.5
5.a.5
5.b.3
5.c.2
5.d.0
6.a.5
6.b.5
6.c.3
6.d.0
7.a.5
7.b.1
8.a.0
8.b.3
8.c.4
8.d.5

INTERPRETATION:

SCORE OF 30 to 40. You would probably be well-served by speaking with a bankruptcy attorney. You will also need IMMEDIATE professional counseling if you are suicidal, if you are contemplating divorce because of money, and/or if you are abusing substances. Do not be afraid of bankruptcy. I know from personal experience that when you file for bankruptcy the world continues to twirl, ice cream is still fabulous, and life is still filled with potential!

SCORE OF 20 to 30. You are probably teetering on the edge and a visit to the lawyer would probably help you see things clearly. Options such as severely reducing your expenditures coupled with somehow increasing your income, and then devoting the extra money to wiping out that debt, would most likely be helpful.

SCORE OF 10 to 20. You are probably doing better than you realize and there are options open to you (such as named above) that can really turn things around. One of the biggest steps you can take is stop getting into debt. Find the root of the problem of your debt (are you addicted to shopping, are you lacking skills to earn the income you need, etc.) and nip it in the bud now. While you can.

Good luck to you and let me know how you are doing.

NOW HERE’S ONE OF MY FAVORITE FACTS:

WHERE DID THAT COME FROM?

“Niagara Falls! Slowly I turned … step by step … inch by inch …” We associate the routine with the Stooges, Abbott and Costello, and I Love Lucy. But where did it really come from?

“Comic Joey Faye claimed authorship of “Slowly I Turned” in its many formats. Born Joseph Palladino in 1909 on Manhattan’s Lower East Side, he appeared in burlesque and vaudeville shows, usually as a sidekick to the star, often Phil Silvers. He was in 36 Broadway shows, including Man of La Mancha as Sancho Panza, and dozens of movies. He had his own series, The Joey Faye Frolics, in 1950, and appeared as well in other television shows, such as The Real McCoys, Perry Mason and Maude. His most recent claim to fame was as the green grape in the Fruit of the Loom underwear commercials. He continued to work until well into his 80s and died in 1997.” thanks to Rebecca Day, Niagara Falls Reporter.

Best of luck. PLEASE SHARE HOW YOU ARE DOING.

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