Suze Orman Bankruptcy Recommendations Summarized

By Janet Peterson on April 17, 2010, 6:29 am Posted in Business News

Suze Orman explains that creditors are often the shove that causes a person to declare bankruptcy. They have the special ability of making a person panic. Unfortunately this panic can lead to bankruptcy. According to Orman bankruptcy is not the best solution.

Orman Says You Need To Be Determined To Start Over

Orman explains that many situations may put a person in a financial bind. There might be unexpected illnesses, a divorce, a loss of job or any of a number of other obstacles that have struck a person financially. Before entering into a bankruptcy she says that a person must be committed to starting over. She says that a person needs to have the goal of building a solid financial life. Orman says that this requires three steps: time, effort, and good money habits.

Susan Orman Says Bankruptcy Rides With You In The Future

Orman explains that if a person declares bankruptcy it will have a very negative impact on a credit score. Although some people feel this is not so important (they may not plan to buy a house or a car) what some do not realize is that this can also impact such things as a car insurance premium. Declaring bankruptcy will generally stay on a credit report for ten years. And, if a person decides to pay off a small creditor, who was an original filed in the bankruptcy, then this can start a cycle all over.

 

She Says Bankruptcy Is The Worst Choice To Make

Suze Orman explains that bankruptcy is the worst thing a person can do. Further, she says it should be avoided at all costs. Instead Orman suggests joining a consumer credit counseling agency. She explains that bankruptcy is always there poking you in the eye. If there is any other option, any alternative than bankruptcy, it should be researched before committing to bankruptcy.


5 Responses to “Suze Orman Bankruptcy Recommendations Summarized”

  1. Doris Odhner says:

    I am in my seventies with $20K cc debt due to illness and its impact on expenses and income. I don’t want bancruptcy but I dont’ know how to find a credible agency that might advise me. Thanks for your help,
    D.

  2. Eric says:

    There is nothing wrong with bankruptcy as an alternative to getting even further in debt and thereby existing in slavery. Our founding fathers believed in the biblical principal of debt foregiveness (read Deuteronomy)and it is one of the reasons our economy has flourished.

  3. Dianne says:

    Eric—
    I understand what you’re saying but what about this? My daughter’s fiance is 26 years old, has a job and earns over $50K, comes from a family with money, they eat out avg 5 days a week, he has a car payment, they go out for fun quite often, go to concerts, and he spent so much that now he has over $20K in credit card debt. The problem? They are pregnant, and her fiance contacted a laywer to inquire about BK for this reason: to get rid of all debts so they could “start fresh” when the baby arrives in September, so my daughter won’t have to work and they won’t have to pay for daycare. That’s not what our founding fathers had in mind, I don’t think—-someone who purposely racks up tons of money and then wants to file BK for a convenience factor of not paying for daycare??????? I have a massive problem with this idea and I am absolutely disgusted. I was recently on unemployment for two years, and am a cancer survivor with medical bills…..and every month I have faithfully paid my bills (including two credit card payment plans to get out of debt)and did without so I did not get into trouble. I abhor the thought that some lawyer and court will allow this BK to go through. So something to think about as this does not “flourish” the economy—-I call it stealing money from the economy since he wants to weasel his way out of paying his debts!

  4. Larry Gray says:

    I am not sure judging others is ever good. I do think that bankruptcy might be the best possible solution for some depending on their financial situation. Only they can decide what best to do, upon learning from you, or a competent adviser or attorney.

    I have heard people declare the lifting of never ending debts off their backs that they would in all likelihood never be able to pay off helped them get a bounce in their steps with a new fresh start. On the other hand a bk continues to show up whenever applying for a job or renting a place. Some might forgive that if one is back on a good credit footing, after a year or two.

    Many others will continue to see it as a “black mark” on the applicant’s record and it will affect one’s chances for a job, etc. On the other hand people have legitimate reasons to go bankrupt…i.e. insurmountable medical debt and mounting debts due to job loss, etc.

    I see people able to buy homes 2 years after bankruptcy, who had reestablished responsible credit pay off patterns with as little as one or two reaffirmed or newly established credit trade lines. It is an individual decision that should not be entered into lightly.

    I agree with you Suze Orman…one should avoid
    it…but only if they can get on a plan to pay
    off the debt in 1 to 5 years and still be able
    to live without undue financial stress.

    Finally, I think Congress carefully passed a law not long ago to prevent those who seem to purposely run up debt only to file bankruptcy,
    and to so easily discharge all debts again. Why anyone would is beyond me, but some people have an odd mindset to purposely living beyond their means,and thinking they can file bankruptcy instead of paying back the debt.

  5. Laura Riera says:

    MI brother is loosing his own house please he needs your help he has 4 girls BANK OF AMERICA IS PLAYING WITH HIM FOR OVER 3 YEARS
    Please give has a call 704 451 9806
    my brothers 704 533 2356
    THANK YOU

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