Tag Archives: fresh start

Five Recoveries from Bankruptcy

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Bankruptcy does not have to mean the end of the game.

When you and your friends played “Monopoly,” declaring bankruptcy meant financial failure so intense that recovery was difficult or impossible. Some moneylenders and debt-buyers like to perpetuate that idea in the real world, to keep honest American families form declaring bankruptcy to eliminate debt or get more time for repayment.

They are partially right. Those who fail to take advantage of their fresh financial start and fall back into old fiscal habits may very well be counting the months until they can file bankruptcy again. But for others, bankruptcy can be almost literally a once-in-a-lifetime opportunity to wipe the slate clean and go back to the starting line.

Bankruptcy recoveries

These stories are by no means typical and are not any guarantee of success whatsoever. But these case studies do mean that there is hope after bankruptcy (the keys to their recoveries are in italics):

  • Stanley Burrell, popularly known as MC Hammer, filed bankruptcy in 1996 after years of chronic overspending. He is now a pastor in California living a more austere and happier lifestyle.
  • Burt Reynolds also declared bankruptcy in 1996, following a messy divorce from Loni Anderson and a failed business venture, but he recovered over time and currently has a net worth of approximately $25 million.
  • Stan Lieber, better known as Stan Lee, lost a great deal of money in the dot-com bust and filed Chapter 11 bankruptcy, but he started a new company and rebuilt his public image.
  • Henry Ford had two failed businesses, had filed bankruptcy twice, and was down to his last few dollars in the third business, but he persevered and quite literally struck black gold with the Model T in 1908.
  • Abraham Lincoln filed bankruptcy in 1833, after a store he opened with a partner “winked out,” in Lincoln’s words. He completed the 19th-centruy version on his bankruptcy plan, and went on to achieve some degree of political success.

Bankruptcy does not have to be the end. For a free consultation with a Brevard County Chapter 7 attorney, contact our office. An attorney is available by appointment to discuss your case.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

Is Wage Stagnation Real or Illusory?

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President Harry Truman once wished for a one-armed economist. The reason? Seemingly all his economic advisors consistently said “on the one hand X, but on the other hand Y.”

Wage stagnation is a current case-in-point. It has become almost axiomatic to say that the middle-class is shrinking. One economist begs to differ, claiming that this statement fails to account for such things as the actual purchasing power of a dollar. For example, an average employee in 1959 would have had to work 100.5 hours to purchase a washing machine, as opposed to just 23.3 hours in 2013. Or, a 1959 employee had to work 127.8 hours to purchase a television, as opposed to 20.7 hours today.

Professor Smith also argues that today’s workers enjoy many more noncash employee benefits than did their predecessors.

Spending and saving

The wage-stagnation point is certainly debatable. But the savings rate may shed some additional light on the subject. Whereas the savings rate was once as high as 7%, it has dropped to only 1% or 2% in recent years. So, there are a lot of underfunded retirement plans and bare savings accounts in today’s America.

The low savings rate means a couple of things for American families:

  • Many people are almost entirely dependent on rising wages to keep pace with rising costs. If there is any significant discrepancy, some families must either forego paying some bills or borrow money via credit cards and payday loans.
  • Without a sufficient amount of savings, many people are vulnerable to financial emergencies, such as medical bills or long-term unemployment.

If you are behind on your bills, Chapter 13 Bankruptcy can help you catch up and start to rebuild both your credit score and your savings account.

To find out how bankruptcy can help you, contact our office for your free consultation.


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