A Case Study in Bankruptcy Recovery

Most people don’t ever expect to need to file bankruptcy. We usually believe that working hard, paying your bills, and taking care of your responsibilities should guarantee financial success. But sometimes life takes an unexpected turn and finances get out of control. Bankruptcy was designed for just these situations and can offer a new start after difficult times.

Unexpected Circumstances

Brian was a 19-year-old guy, working a full-time, entry-level job while pursuing his future career. He was able to cover his bills, but didn’t have much put away for savings and definitely lived paycheck to paycheck. Occasionally, he would overspend or an emergency would come up and he’d need to use a credit card, but he was always able to make the minimum payments on his card.

Brian rode his motorcycle for transportation to and from work, and one day was in an accident that sent him to the hospital and damaged the other driver’s car. Unfortunately, the accident was his fault and he did not have medical insurance. Brian lost his method of transportation, missed work due to his injuries, and had excessive bills at the hospital and for the other driver’s vehicle. It wasn’t long before he was in over his head and simply couldn’t keep up with all his expenses.

Brian wasn’t sure what to do, so he called a bankruptcy attorney who helped him file a Chapter 7 bankruptcy. The calls from his creditors stopped and he was able to focus on recovering and getting back on his feet.


Brian was able to get back to work, finish his schooling, and start his career. He needed transportation, and knew with a bankruptcy on his credit report, he wouldn’t get the best rate on an auto loan. He rode the bus for a while, saved up a down payment, and took out a loan at a high interest rate. After a couple of years of on time payments, his credit score improved, and he was able to refinance at a better rate to lower his payments.

After his unexpected medical bills, having medical insurance became top priority, no matter the cost. He reconfigured his budget, cut out some luxuries, and purchased health insurance. As he moved on to better jobs in his field, he was fortunate enough to have medical insurance through his employer.

In addition to insurance, having an emergency savings account became a must for Brian. When extra expenses came up, he was able to dip into his savings and then build it back up, which kept him from using a credit card. When he now looks back on his bankruptcy, he is thankful for the lessons he learned at such a young age. Now, eight years later, Brian has a great credit score, healthy savings account, no credit card debt, and has purchased a home.

Get a New Start

No matter your age or circumstances, if you’re in debt over your head, it’s worthwhile to consider bankruptcy. It may give you the clean slate and breathing room you need to get back on your feet. If you have questions or need financial advice, give me a call.