bkrptcy a business decision, and why I'm not feeling so bad about it.

[bnkrptinva]

For the last couple years, and more accurately, the last 6 months, every day I see news on companies who are filing bankruptcy. Some to stay in business, some who will go out of business. I've made some dumb choices in my financial life, but then had a divorce (I could stay in a bad situation, avoid bankruptcy, or file, and get out of the situation), now I have a family, one more on the way, and so that I can pay for the bare neccessities, I'm filing. Should I have just lived w/my parents at almost 40 years of age and paid off my debts for the next 5 - 10 years before starting a new happy life? I dunno, but when I see how many companies file, I see tax dollars (that we pay) being given to banks, companies to stay a float, I don't feel so bad that I got a divorce, and started a new life.

Granted, I will not get back into this situation. We will live the way we can afford, if it's beyond what we can do...we will go without. I'm just feeling less lousy about it all. Maybe I'm trying to justify it in my mind, but then again..not really....not after reading the news every day.

[cltmoto]

Same boat

I was in the same situation - ran a small business, maybe not the smartest way, getting myself into further debt (personally guaranteed) and finally couldn't do it anymore. I tried to pay and pay, but then realized that I'm peanuts compared to the big boys (around 90K in business debt). At first I felt horrible about the decision to file but I keep telling myself "It's business debt and a business decision."

One silver lining is that as you said - I will now live a "cash" based life - if we can't afford it, we're not buying it. More money is going into savings and life is actually pretty good. Of course I'm 2 weeks away from my 341 meeting and my I'm getting pretty nervous, but this board has been a lifesaver in helping me stay sane.

Tom

[Pizza]

For the last couple years, and more accurately, the last 6 months, every day I see news on companies who are filing bankruptcy. Some to stay in business, some who will go out of business. I've made some dumb choices in my financial life, but then had a divorce (I could stay in a bad situation, avoid bankruptcy, or file, and get out of the situation), now I have a family, one more on the way, and so that I can pay for the bare neccessities, I'm filing. Should I have just lived w/my parents at almost 40 years of age and paid off my debts for the next 5 - 10 years before starting a new happy life? I dunno, but when I see how many companies file, I see tax dollars (that we pay) being given to banks, companies to stay a float, I don't feel so bad that I got a divorce, and started a new life.

Granted, I will not get back into this situation. We will live the way we can afford, if it's beyond what we can do...we will go without. I'm just feeling less lousy about it all. Maybe I'm trying to justify it in my mind, but then again..not really....not after reading the news every day.

I understand how you feel, I feel the same way. Businesses have to file because of bad decisions and bad luck, the same reasons consumers have to file.