Online Info: File for Bankruptcy - 11 Bankruptcy Commandments - 11 of 11

Online Info: File for Bankruptcy - 11 Bankruptcy Commandments - 11 of 11

11. Thou shalt be yourself (and not reaffirm an old debt after bankruptcy, unless you really NEED the related thing).

Note: When you consider whether to file for bankruptcy and start online gathering information, after starting your research, feel free to call me, bankruptcy attorney Laura Buchanan at 323-686-5400 ext. 2 for more information.  As of the date of this post, one cannot simply file for bankruptcy online.  You need to file papers at the Court.  If you use an attorney, they will file electronically for you.

Bankruptcy is designed to give you a fresh start without many of your old debts that led you to bankruptcy.  But your lenders, especially car finance companies, would love it if you would sign an agreement saying that -- even though you filed for bankruptcy -- you agree to be liable for a debt that secures your beloved asset (usually a car). 

That is, they want you to “reaffirm” your debt to them after you filed for bankruptcy.  Most people want to pay off their debts, and they want to tell people what they want to hear.  These impulses lead people to make the often bad decision to reaffirm car loans, mortgages or other loans secured by your beloved stuff.

It’s time to get real about where you are in life.  You are not to be a big spender.  Your goal right after bankruptcy is to repair your credit by saving, saving, saving; only buying things you absolutely need; and paying all new debts off every month. 

You cannot afford to keep up with the Joneses, the Kardashians or anyone else.  By the way, you never know what those folks really have.  Have they taken out loans at stupidly high interest rates?  Did they get stuff from their daddy, a sugar daddy, or a s*x tape?!  American values say that you don't need those things.  American law gives you the right to file for bankruptcy (if you qualify), and bankruptcy is designed to help you to start over. 

You should only reaffirm a debt if you really NEED that asset.  Remember the difference between WANT and NEED.  You NEED food to keep you alive and healthy.  You just WANT a piece of cake after you’re already full.  It’s time to push away from the table.

Take responsibility for yourself and only reaffirm agreements for assets that you NEED.  Do you NEED a pickup truck because you’re in construction? 

Or do you have a desk job, so you need to let that pickup go because the payments are too high and to get a car that meets your real needs.  Your real friends will respect you for taking care of yourself and not trying to pretend you’re something you’re not.  As I believe they say in Texas, don't be "all hat and no cattle."

For the first Bankruptcy Commandment in this series of blog posts, click here.

For the second Bankruptcy Commandment in this series, click here.

For the third Bankruptcy Commandment in this series, click here.

For the fourth Bankruptcy Commandment in this series, click here.

For the fifth Bankruptcy Commandment in this series, click here.

For the sixth Bankruptcy Commandment in this series, click here.

For the seventh Bankruptcy Commandment in this series, click here.

For the eighth Bankruptcy Commandment in this series, click here.

For the ninth Bankruptcy Commandment in this series, click here.

For the tenth Bankruptcy Commandment in this series, click here.

This is the eleventh Bankruptcy Commandment in this series.