Close to a million people file for personal bankruptcy annually looking for financial relief through either Chapter 7 or Chapter 13 bankruptcy filings. So those numbers tell you that you are not alone. It is not the end of the world. In fact it may be the start of a whole new life for you and your family. Believe it or not bankruptcy can even happen to some of the richest and famous people in America! Take our Republican Presidential front-runner Donald Trump for example. Not only has his corporation filed for bankruptcy, they have done it four times in the last 30 years! Let’s take a closer look at his bankruptcy cases and how they should make you feel better about your own financial situation.
Corporations like individuals have the ability to file similar petitions of bankruptcy through the many forms of Chapter 11 bankruptcy. Donald Trump, owner of his self-named casino-empire and four of the corporations that bear his Trump moniker, have filed for bankruptcy in 1991, 1992, 2004, and 2009. This reorganization bankruptcy is designed to restructure a business without shutting down the company completely. This restructuring is good news in some ways since all employees will not be out on the street dealing with their own financial struggles but they still cost hundreds, if not thousands, of jobs as well as deprived lenders of close to 1 billions dollars. While your individual bankruptcy may have caused some level of hardship for your family it surely did not put others out of work or cause the unemployment rate to rise!
In fact, your individual bankruptcy is most likely debt due to a personal or medical crisis or possibly unemployment and deals solely with your own personal money. Mr. Trump’s debt was run up in his real estate and casino dealings using other people’s money and investments. He claims his bankruptcies were strategic in nature and not a failing of his business savvy. Feel better about yourself that your trip to bankruptcy court will most likely be your only one and deals with money in your individual sphere.
Finally, chances are that your bankruptcy is not history in the making. Mr. Trump would not be making history due to his run for political office. His name can stand with the likes of Harry Truman, Abraham Lincoln, Thomas Jefferson and James Monroe, all of whom also had financial troubles throughout the course of their lives. No, instead Mr. Trump makes history statistically speaking. Fewer than 20% of companies with assets over one billion have filed for bankruptcy in the last thirty years. Trump’s have done so four times! Take comfort that your individual bankruptcy will be a mere blip on the radar a few years from now. You will be back on your feet and doing well in no time at all.