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The decision to file for either a business or personal bankruptcy is difficult enough. While you may have prepared yourself for the short-term and long-term financial consequences for the decision, most likely the emotional consequences have yet to be addressed. Each person is different and for some the emotional reactions are less than others but for the most part, each walks through the different stages although not necessarily in any particular order. By being aware of the emotional stages to the bankruptcy and learning to cope effectively you can begin to heal from the storm of bankruptcy.

Shock – Is this really happening? This is the most immediate reaction to the reality of filing for bankruptcy and usually lasts for a couple of weeks. It is similar to a deer caught in the headlights of an oncoming car; you feel paralyzed, overwhelmed, and insecure about the decision you made. Worse, some your past decisions are what contributed to this moment so you are reluctant to trust even yourself to make the simplest of decisions in the moment. Shock fades as the reality of your situation sets in and some minor decisions are able to be made.

Guilt – What have I done? Recalling past mistakes over and over for the point of learning from them is useful but when the recalling turns into beating yourself up, it becomes destructive. Feelings of guilt over poor decisions in the past seem to flood your thinking and can be too much to handle at times. Being aware of your mistakes and learning from them is different from agonizing over them. What is done is already done, now is not the time to beat yourself up over the past, rather begin to look forward to the new possibilities.

If you want to become wealthy you must look at those who have already generated wealth, and decide which strategy is right for you. There are about half a dozen ways in which to become wealthy, each with their own positives and negatives. Since there are many different ideas of what represents wealth, let’s just say any technique that allows us to make at least a million dollars from scratch.

You could inherit the money. If you have a wealthy parent this could be a possibility. However, this is obviously not something that is under your control, but is solely based on circumstances.

You could win the money. This again is entirely out of your hands and is strictly based on the luck of the draw. While it is possible to win the lottery it is highly unlikely. It is also something that wealthy people rarely if ever do to accumulate more wealth.

Another way you could achieve wealth is to work at a typical job for many years, save and invest a large amount of what you make. If you can earn a large enough return on your money and allow it to compound for long enough, your money could grow over time and by the time you retire you could end up wealthy.

You could decide to go into a profession that is known to pay extremely well. These might include, becoming a doctor, lawyer, or similar profession. While these can pay extremely well, you will need to spend the time in college learning the trade. This could take upward of 10 years just to get the education required. However, if you can put in the time and become a professional in one of these highly paid fields you could retire wealthy.

Being deep in debt can feel hopeless. To make matters worse, there are lawyers who advertise on radio and television who promise to make everything better through the magic of bankruptcy. All you need to do is call their toll-free telephone number for a no-obligation consultation and you’ll be on the road to financial freedom. While there may be rare cases where it can help, here are 10 things you should know before filing for bankruptcy.

1. It is not the ultimate solution to your money problems. You may be able to get rid of your debt, but you will only be treating the symptom of your problem and not the cause. Chances are it wasn’t entirely your fault that you went into debt, but there are also things you could have done differently. Learning new spending and saving habits is a vital step to regaining control; whether you end up filing for bankruptcy or not.

2. Declaring bankruptcy is much harder than it used to be. The bankruptcy law changed on 200?. There are more hops to jump through, and it’s not an easy process. You can always try a do-it-yourself bankruptcy, but they have made it so complicated that you’re practically forced to hire a lawyer.

3. There is more than one kind of bankruptcy. When it comes to normal consumer debt, there is Chapter 7 and Chapter 13 bankruptcy. To put it in simple terms: Chapter 7 wipes the slate clean, and Chapter 13 sets up an affordable payment plan.

4. You must qualify before filing. Not everybody can file for Chapter 7. That’s because one of the steps is to pass a “means test”. The main purpose is to see if you are capable of paying off your debts under Chapter 13, or if you are “poor” enough to use Chapter 7. The catch is that the courts get to decide what you can afford; not you.