The serial bankrupter
Sometimes people think, that you can beat the system of buying on credit, and paying back their debts that you have rung up. It may seem that a great many people managed to get away with this, but that is not always the case, or it may seem that way but in reality it is not. Once you have been made bankrupt, you may find it very difficult to get credit, after a while and was a little advice, you will learn that there are places that would extend you finance.
The biggest drawback to these lines of credit is that they are very limited, and often carry very high interest rates. Consequently, you must get a great many lines of credit in order to achieve a high amount of debt. The problem for repeat bankrupters, is that there are only so many of these institutions that would allow bankrupted persons to apply, and the more you use them, and failed to repay the funds to them, the fewer companies will be available for you to use. In addition, these companies will record your histories and these will be looked at by the new institutions that you apply to, and even if they do give you credit, they will give you a much lower amount, and at a much higher interest rate. By burning your bridges in this manner you would end up with very few places to go to, and paying extremely high interest rates. These people may well have achieved a very good life, some goods, but in the end the cost is always far too high, and more would be achieved if they had played by the rules.
Chapter 7 states that you can only file bankruptcy under this chapter every eight years, however you can go to Chapter 13 after filing for Chapter 7 after four years. And then you can refile Chapter 13 every two years. It’s my saying that it is very easy to file for bankruptcy chapter 13 multiple times, and it is however Chapter 7 involves the loss of significant ownership, and therefore is a difficult set for people to take if they choose to take this route.
There are two reasons why people do this, the first reason is outright fraud, the second reason is because an individual is very bad at managing their finances, or their life encircles a very poor career choice, extreme living expenses, or live in an area where income security is nonexistent. Occasionally, there are individuals who are unable mentally, to manage their own finances against their own desires, and this is purely a psychological condition, and therapy treatments is required for these individuals. Spendaholics, as they are sometimes known, require help and guidance to overcome the route cause for this behavior and this can come in groups as well as psychiatric help.
There is no reason why an individual cannot recover from bankruptcy with very little lost, and in as little as one you can return to the lifestyle or close to it, and even enjoy the use of credit for the rest of their lives. If you do become bankrupt make sure you become one of these, and not a serial bankrupter!
