There is nothing more frustrating than filing a Chapter 7 Petition and then learning that you’ve messed up in a major way because of something that could have easily been prevented.

As a bankruptcy attorney here in the San Francisco Bay Area, I have a checklist I go through with my clients to make sure that we identify any “red” or “yellow” flags.  These flags are items that the Bankruptcy Trustee may question you about at your Meeting of Creditors, and if not handled properly, could even cause dismissal of your case.  My experience is that if you identify, disclose, and prepare for the items listed below, you’ll greatly increase your chances of your case going through smoothly.

1)      Paying Debts Back to Family or Friends.  Paying debts back to family or friends can pose a huge problem for both you and your family member or friend.  The Bankruptcy Code requires that any payments over $600, made to family or friends within the past year, be disclosed on the bankruptcy paperwork.  Depending on your situation, the Trustee may demand that the money you re-paid your family/friend be turned over to the Trustee.  Imagine your loved one getting a letter from a Bankruptcy Trustee asking that they return the money you paid them.  This could cause embarrassment, as well as a financial mess for your loved one who would have to come up with the money.  If you’re considering bankruptcy and owe money to a loved one, the best thing is not to pay them back now.  If you’ve already made such a payment, talk with your attorney about disclosing this properly and how to handle it.

2)      Taking Cash Advances or Using Credit Cards Immediately Before Filing.   A huge red flag, especially with creditors, is using your credit cards fairly close to the date you file for bankruptcy.  If you are a debtor and have a bit of credit available on your credit cards, DO NOT decide to max it out and/or take a cash advance thinking you will be able to discharge it as part of your Petition.  Why? Because your creditors, and the Trustee, will likely see your actions as fraudulent.  This would then mean that your Petition could be dismissed and/or you may even face serious consequences such as criminal prosecution. Once you decide that bankruptcy is the path for you, stop using credit cards completely!

3)      Transferring, Giving Away or Hiding Assets.  Don’t transfer your assets to anyone else and definitely don’t hide anything (i.e. that second or third car, that timeshare in Cabo, that joint account with your girlfriend, etc.) because non-disclosure of assets is a HUGE no-no.  Failure to disclose all your assets could greatly, and negatively, affect your case.  For example, at a recent Meeting of Creditors, I witnessed the Trustee demanding that a debtor (not my client!) send the Trustee a check for $9,000 because the debtor could not explain why their reported bank balance did not match the bank statement.  In extreme cases, failure to report and/or hiding assets can cause the Trustee to dismiss your case.

4)      Your Income Is Greater Than Your Expenses.   When filing for bankruptcy, you’ll need to calculate your income and compare it with your expenses.  Your expenses must be reasonable, and what the law considers reasonable is sometimes surprising.  Clearly, expenses for your dog Mr. Muffins would not be legitimate expenses for you to take into account.  But even things like paying for your child’s college tuition might not be able to be included.  If from the get-go, your income is greater than your reasonable expenses, you clearly will have a problem.  The Trustee will wonder why you are not able to pay your bills, and could move to dismiss your case or have it converted to a Chapter 13 (the type of bankruptcy where you pay your debts back to creditors over time.)  So before you file, make sure that you do your calculations, and make sure you don’t have any expendable income.

5)      Banking With Your Creditors.  If you’re considering bankruptcy, and have a bank account with a company to whom you owe money, you need to take action fast.  Immediately close that account (make sure you have a paper trail) and open an account someplace else where you don’t owe money.  Why? Because the bank to whom you owe money can easily freeze your account and/or pay themselves what you owe from your account.  Yes, it seems unfair, but unfortunately, it frequently happens.  I recently had a client that banked with their mortgage holder, and who made the mistake of not closing their bank account (even though I urged them to do so).  Since the clients were behind on their mortgage, you can guess what happened to the $500 in their bank account.  That’s $500 they could have used to keep food in the fridge.

6)      Making Major Financial Decisions.  When you’re in financial distress, it often feels like you have to do something, anything, to regain control of your finances. And sometimes, unfortunately, people react without getting all the information about what a specific transaction may mean to them.  Example: Trying to avoid bankruptcy, Jane contacts a credit counseling service in order to deal with her $50,000 in credit card debt.  One of her creditors settles the account and forgives $15,000 worth of debt.  Without intending to or realizing it, Jane may be taking on a tax liability; any amount creditors have “forgiven” may be taxable.  Thus, Jane still owes $35,000 to other creditors, and may owe taxes down the line on a portion of the $15,000 that was forgiven.

Other major decisions that should be avoided if contemplating bankruptcy are short-sales, debt consolidation, tapping into retirement accounts, and selling a vehicle or home. The intent behind bankruptcy is to give people a clean slate as possible; in order to get that clean slate, avoid making any major financial decisions prior to consulting a bankruptcy attorney.

7)      Hiding Any Information That You Think Should Be Disclosed.  Please – when filing for bankruptcy, don’t lie, and don’t hide anything - because the Trustees have a pretty good knack for knowing when someone is not being truthful.  

A typical trustee sees about 10 cases per hour for about 6 hours a day, 2-3 times a week. That’s about 180 cases a week, 720 cases a month, 2160 cases a year! With those numbers, you can get the picture that the Trustees have seen it all, heard it all, and are really good at reading people.  When it comes to bankruptcy, not disclosing something is often worse than having it disclosed it the first place.  As a bankruptcy attorney, I always tell my clients – if in doubt about whether to disclose something, trust me – and tell me about it.  I can help you prepare for when it does come up.  To do otherwise is a huge risk, and frankly, not something I would consciously allow a client to do.  I work with people that need help, but I will not represent someone that is looking to lie, deceive, or abuse the system.

If you need a bankruptcy attorney in the San Francisco Bay Area, I would be honored to help you.  Please contact me at 925-415-6101. 

 
 
 Some people decide to walk away from their properties because they are too far underwater on their mortgage payments.  They believe that since the lender now has the house, they are now off the hook for the money owed, and the lender can’t come after them. 

Is this true? Well - as with all things legal – it depends.

If you only have a first mortgage on the property, this strategy may work.  In California, a first mortgage is generally a non-recourse loan, which means a lender cannot get a deficiency judgment against a person in a non-judicial foreclosure (which most foreclosures are).   However, you may still be liable for income tax on the difference between the amount you owed, and the amount the lender sells the property for.  The reason for this? The IRS treats as income the amount you didn’t have to pay back.  If you’re thinking that’s pretty nutty, I agree. 
Check out this post for more information on the tax consequences of a foreclosure or short-shale versus a bankruptcy.   

Now, if you have a refinanced mortgage, an equity line of credit, or a second mortgage, those loans are most likely recourse loans.  This means that you are still personally liable for the amount you owe.  The lender can sue you – and eventually garnish your wages -   for something you thought you had walked away from. I’m seeing more and more people each day that are being hounded by collection companies coming after them for those recourse loans. 

 So, what are your options? They are: 1) pay the outstanding amount owed (good luck trying to negotiate with the bank); or 2) look into whether a Chapter 7 bankruptcy filing will wipe out the debt.  If you do not have significant assets, and don’t have disposable income each month, it likely will.


If you're in the San Francisco Bay Area and need a Chapter 7 bankruptcy attorney, the Law Office of Mauricio Ramos is always happy to help.



 
 
Myth.  Many people see on their credit report that a debt has been “charged off” and believe they no longer owe the debt.  That belief is incorrect, and can cost you money.  A bank can still send a “charged off” debt to collections, sell the debt to another company, or even sue you for the amount owed.
 
Why is this? Because banks use the “accrual method” of accounting, which allows them to count income when it is earned and not received.  For example, credit card banks are allowed to count as income the interest that is due from a consumer, even if not yet paid.  When you stop paying on a debt, and enough time has gone by that it’s clear you are in default, the bank then “charges off” and stops counting as income the interest which it earned but did not receive.
 
A debt being “charged off” has nothing to do with you being off the hook for the debt.  You still owe the debt, and unless the Statue of Limitations (which determines whether a debtor can collect on  a debt) has passed, it is highly likely that the bank will do whatever it can to recoup what you owe.  If you file a Chapter 7 Bankruptcy Petition, make sure you list all debts that appear on your credit report, including ones that say “charged off,” because you are still responsible for those debts.

If you're in the San Francisco Bay Area and need a bankruptcy attorney, the Law Office of Mauricio Ramos is always happy to help.
 
 
You might have heard that there is a new federal credit card law that has taken effect – the Credit Card Accountability, Responsibility and Disclosure Act of 2009. The intent is a great one because many of the profitable (and abusive) practices of the credit card companies are now banned. For example, interest rate increases can now only affect new purchases, not balances, and the new rate only goes into effect if you’ve missed a payment beyond 60 days. That’s great news. The bad news though is that these sorts of tactics are expected to cost the credit card industry over 12 billion a year in lost revenue and so now credit card companies are creating new ways to go after your money. Some, for example, are tacking annual fees to your account.  In reality, the new law really benefits people that don’t really have any credit right now. If you had a balance before the law took effect your debt may have just become more unmanageable. Here’s why:

 

Before the law took effect, credit card companies raised interest rates because they knew it was going to get much, much harder for them to raise rates.  In other words, there’s a good chance that you may already be paying a much higher interest rate than you were before the law took effect.

 

Take me for example. I had a CitiPremier credit card with an interest rate of about 9% and sometime at the end of 2009 I get this letter stating that the new interest rate is now going to be 29.99% on the current balance!  They gave no reason whatsoever. I’ve never been late, and I’ve paid more than the minimum.  You’d think they would want to do whatever they could to maintain my loyalty. Instead, they turn around and give me a 20% rate increase.  I immediately closed the account. Yes, many financial advisors will advise that closing credit card accounts is not a good idea, but in this case I felt the rate was obscene. So check your statements, because there is a good bet you’re paying a higher rate and may not even know it.

 

Say you owe $10,000 on a credit card, and prior to the changes in the law, the card had a rate of 9%.  The minimum payment was $150 a month. At that rate, it would have taken you about 7 ½ years to pay off your balance.  Now, let’s say your rate has been jacked up to 29.99%.  Given the much higher interest rate, you decide to pay more than the minimum each month.  Even paying $100 more than the minimum - $250 a month – it would now take you 20 years to pay off that same $10,000 balance!

 

I’m all for credit card companies giving people credit so they can buy items they need, but I believe it is outrageous that credit card companies have gotten away with raising rates on balances for items that you bought at a much lower rate! Imagine if car companies did that!

 

My advice – review your statements closely because credit card companies are now required to advise you what it will cost you to pay over the long term.  The credit card companies don’t like that because they know what’s going to happen. You’ll see the truth that they don’t want you to see. The truth of how much they are ripping you off. 

 

 

If you are finding that your credit card debt has now become unmanageable, bankruptcy may be something to consider.  Feel free to contact me to discuss your financial situation.  I’d be more than happy to help.

 

 

 

 
 
 
Are you considering declaring bankruptcy, but are afraid you'll lose your tax refund? I get that question a lot  as the tax season approaches.

Let’s say you are contemplating filing a Chapter 7 bankruptcy, and have calculated that you’ll be receiving a $2,500 tax refund.  What should you do?  Should you file your taxes now? File your petition first? Not say anything?

My answer is the same each time. If it's tax season, than most likely the trustee (who acts as a sort of like a judge in a bankruptcy case) will consider the tax refund as property of your bankruptcy estate, regardless of whether or not you’ve filed your taxes.  The answer is the same regardless of when you file your case - the trustee will consider the refund whether you file your case before you receive the refund, or after.  You never want to hide any assets from the bankruptcy court, as this would be grounds for a dismissal of your bankruptcy petition.  Additionally, you could face formal charges and its simply just not good karma.   

Now for the good news:  There’s a good chance that you'll be able to keep your refund because it may be covered by exemption laws. These are the laws that allow you to keep some assets after bankruptcy.  (There’s a myth out there that if you declare bankruptcy, you are left with nothing but the clothes on your back. Biggest myth ever.)  Whether or not you can keep your refund will depend on the value of the other assets you own (car, savings, clothes, furniture, tools of the trade, equity in home, etc.).  These days, when so many families are upside down on their mortgages and/or have lost their homes, they have few assets - so they're able to keep their tax refund.

If you already have the refund in hand, don’t (I repeat don’t) use your tax refund to repay a debt. If you repay more than $600 to say, your aunt, the trustee will count that as a “preference” and can take money back.  Now, if you need to use the money for living expenses (i.e. food, gas, car repairs, etc.), that's a much better idea.

As always, facts make a world of difference, so always talk with an attorney to make sure you do what’s right in your specific situation.  If you're in the San Francisco Bay Area and need a bankruptcy attorney, I am always happy to help.
 
 
The broken economy is hitting everyone hard, and if you're thinking about filing bankruptcy, you're not alone.

The headline of today's Contra Costa Times featured a story about the huge increase in bankruptcy filings all over the San Francisco Bay Area.  Filings by Alameda and Contra Costa county residents increased 59% over last year, filings by San Francisco, San Mateo, and San Joaquin county residents increased 62%, and filings in Santa Clara, Santa Cruz, Monterey and San Benito increased by 50%. 

The article notes that even people with higher incomes - over $150,000 - are being forced to declare bankruptcy due to large debt and their inability to get modifications to their home loans.

One of the biggest things that prevents people from declaring bankruptcy is the perceived stigma attached.  We're conditioned to think about bankruptcy as synonomous with failure.  As something only "irresponsible" people do.  Perhaps you hold these beliefs yourself.  I ask you to let that belief system go.

This article is proof positive that thousands of good people - just like you - are declaring bankruptcy in droves right now.  They're not failures.  They're not irresponsible.  They're doing the very best they can in a very ugly financial world. 
Take comfort in knowing you are not alone.  Declare bankruptcy if you feel it is right for you.  And go forward, unburdened, with a fresh start and new hope for the future.

 
 

There is no doubt that deciding whether or not to file bankruptcy is one of the toughest choicest you’ll ever have to make. The consequences, and what they mean to you, ranks up there with getting married, choosing where to live and other deep impact choices. Here are 3 questions that can help you decide whether bankruptcy is the right choice for you. These aren’t the only questions you should ask yourself but they are at the core of making this decision.

How Much Do You Owe?
I constantly get asked what the minimum is to file bankruptcy? There is no minimum. As a rule of thumb I believe that if you have over 12k in debt then bankruptcy is worth considering if you are struggling to pay the minimum amounts due monthly. Use the following calculator to get a rough sense of how many years it will take for you to pay off your debt. http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx What’s astonishing about seeing these numbers is that 1) this calculation assumes you won’t ever add a penny more of debt and 2) you will always have the cash flow to pay. Unfortunately, unexpected expenses, such as new tires, medical visits, dental procedures and such come up. Job setbacks also come up. Though there is always the possibility you’ll be making more in the future there is also the possibility that your job doesn’t afford you that security. So think about those things; what you owe and the possibility of you really being able to pay that off in the future. If you’re considering bankruptcy my guess is that in the short-term you are feeling the pain of barely being able to (or not even being able to) pay the minimum but is this situation temporary? Consider the long-term financial impact of what you owe.

Do You Have a Post-Bankruptcy Plan?
Sometimes people file bankruptcy and find themselves no better off financially because they don’t have a plan of what to do after the bankruptcy. They think short-term only. For some, they file bankruptcy because they lost their job and so can’t pay the bills. Unfortunately, even after bankruptcy they still don’t have a job and so find themselves being unable to keep the roof over their heads and/or they begin borrowing from people to make ends meet. In other words they are back on the path to debt. Make sure that even after you’ve filed bankruptcy you have a solid plan for getting back up on your feet. Make sure you can afford housing and the basics (i.e. utilities, food, etc.). If you don’t have that certainty I rather have you wait then on filing until you at least have a good idea that bankruptcy is helping you both in the short and long-term.

What Will Bankruptcy Mean For You?
Can you deal with the consequences of bankruptcy? On one hand you’ve obtained as much of a clean slate as possible financially. Its almost like pressing control-alt-delete on your finances. Some people describe it as winning the lottery because one day they have say $35,000 in debt and then one day its discharged. But every action has its consequences. Bankruptcy takes a hit on your credit report (it gets reported there for 10 years) and so, especially the first couple of years after bankruptcy, you will find that it is tougher to get credit or great terms on a loan. This won’t always be the case. Assuming you start rebuilding credit (see my other posts on how to do that) by years four and five you might find yourself having as much credit as other people who have never filed bankruptcy. But the question remains, are you willing to do what it takes to get past the initial consequences of a bankruptcy? Do you have the discipline to not let this be a permanent financial setback? I want my clients to really want to declare bankruptcy. Many need to but unless they really want to some part of them isn’t completely ready for it. They are afraid of the consequences, the stigma, of the pain they associate with it. I want my clients, as scary as it seems at times, to overall have a feeling down deep inside that what they are doing is what’s best for them. Only by seeing bankruptcy in a positive light will you be acting from a place of power and not fear.

I’m sure there are other questions that will help you decide whether this course of action is the best one for you. I’ll be the first one to tell you that bankruptcy isn’t for everyone. I want it to be a way that you obtain financial peace of mind, again. But that can’t happen unless you truly are able to answer the above-questions from a place of power and feel certain in your decision. May you decide in what is in your best interest…

 

 
 

Part II of the series: Getting Credit 

You’ve declared bankruptcy. Your debts have been discharged. Now what? Well, the good news (unless you have student debt, owe recent taxes or have a similar non-dischargeable debt) is that you should have a fairly clean slate, which means you don’t owe anything. As long as you have some income coming in and live within your means you should get some major financial breathing room after bankruptcy. Eventually though, especially if you will continue to live in the western world where credit is pretty much a necessity, you will NEED to rebuild your credit history. Before you do anything make sure you’ve read my post above about your “financial blueprint”. Once you’ve done that proceed….

Step 1 is to figure out where you are at now and ensure your report is as “clean” as possible. This means getting a financial snapshot of what your credit report looks like. So I say about 4 months after your bankruptcy pull your credit report (available free once a year from www.annualcreditreport.com) and take a look at what it says. After a Chapter 7 bankruptcy your previous credit card and personal debts should now be discharged and there should be a notation saying so next to each debt. If for some reason a creditor is still showing a debt (and you included this in your bankruptcy) contact them immediately. Send them a copy of your discharge notice with a letter explaining the status. You can’t as easily get post-bankruptcy credit if some pre-bankruptcy debt is still showing on your report so take care of it.

Step 2 is to apply for credit and get a line of credit. I know, I know, it seems counter-intuitive that only a few months back you had to declare bankruptcy only to now be looking for more credit. Remember, unless you plan on living strictly off cash for the rest of your life the world pretty much operates on credit. This means that if you plan on buying a house in the future or a car, unless you can pay for it with cash, you’ll need to finance it. To do so you need to have re-established your credit history. So yes, seems crazy but start getting credit. You may already have received offers in the mail and if that’s the case you already know that a lot of these offers just don’t seem that great. Because they are not in some ways. Many companies (remember you are recently out of a bankruptcy) will limit the line of credit they are willing to give you (some may give you as little as $250, maybe $500 if you’re lucky). Not only that but many credit card companies will charge you an upfront “annual fee” (around $89 is not too uncommon) plus there might even be a “maintenance fee” of some kind (another $35 or so dollars). “What????!!!” you might be saying. Yes unfortunately rebuilding your credit is going to take a little investment up front. Do it responsibly and it will pay off down the line. My suggestion is you go on-line to get the best deal by visiting www.bankrate.com and searching for a credit card company that can give you the best deal based given your recent bankruptcy. BEWARE, there are unfortunately a lot of scams out there and so you want to make sure you do a bit of research. If it seems too good to be true, guess what? Yes, it probably is too good to be true. Here’s a recent FTC alert about such scams www.ftc.gov/bcp/edu/pubs/consumer/credit/cre25.shtm. Also, getting a secured credit card is a great idea. That’s where you basically deposit a specific amount with the credit card company (say $500) and they then in turn give you a credit line for at least that much. They know they’ve got your money already up front and so they may be more flexible with you. Again, www.bankrate.com is a reliable, trusted source for secured credit cards. How many credit cards should you get? I say at least one, preferably two so that you can manage multiple lines of credit. Secured or unsecured?

Step 3 is to manage your line of credit.  Because you’ve been burned by credit card debt in the past you don’t want to experience that ever again and so the key will be in managing effectively your new line of credit. My suggestion is that you pick a category of something (like gas or groceries) that you know more or less how much you spend on a monthly basis. So now, instead of paying cash or debit for that category put it on your credit card AND pay it off at the end of each month. So for example, say you know you spend about $150 of gas on your car each month. Each time you pump, put it on your credit card, and when the bill comes due PAY IT IN FULL. You do this consistently and at some point in the future (maybe a year, maybe less depending on the credit card company) they will increase your credit line. At the same time your FICO score should be going up every few months. I suggest you pay the few dollars to get your FICO score (www.myficoscore.com) and review your FICO every 6 months. You should see small but incremental improvements. By the way, unless you’re willing to pay a monthly fee that can quickly add up I don’t think some of the “monitoring services” a lot of companies provide is worth the cost.  That’s one of those packages they sell you where they say they’ll monitor your credit score, send you e-mails, alert you of fraud, etc. Sounds nice but ultimately I don’t think necessary.

Step 4 is to begin negotiating a year or so after your bankruptcy with your credit card companies to reduce the APR, waive the annual fee and/or increase your line of credit. If you’ve paid consistently and have paid in full each month they should be flexible. If they are not flexible take your business elsewhere. This means you repeat Step 2 above. By now you should see improvements in the offer (such as no annual fee) and though you may jump from one credit card company to another a couple times the first couple of years (and reducing your FICO score temporarily because that’s one of the factors that impacts your score) after a bankruptcy I believe that ultimately a better line of credit and terms more than makes up for this. By the way, if you do leave a credit card company, make sure you request in writing that any accounts you want closed are “closed at the consumer’s request.”

And there you have it. In a nutshell, 4 easy steps to do (and repeat as necessary) as you rebuild a strong and solid financial future.

 
 

Part I of the series: Your Financial Blueprint

You declared bankruptcy, had your debts eliminated (in legal parlance “discharged”) and may be thinking, “Now what?” How do I start rebuilding so that in the future I have financial stability and even financial freedom? Here’s what your first step needs to be.

First off define what financial stability and financial freedom mean to you. The answer to these questions will help you set a definite goal. For some people financial stability means they have a specific amount saved up, are earning a specific amount each year and/or have so much in assets. For others, its simply being able to pay the day to day bills. And yet for others its about being able to provide for others. I don’t know what the answer is for you but my first piece of advice is that you find out.

If you don’t define what financial stability and freedom mean to you then I hate to be the bearer of bad news but there’s a high probability you’ll end up in bankruptcy again in the future because you haven’t broken the “pattern of your financial blueprint”. Here’s a good analogy to help you understand this by what I mean pattern. Ever read or heard about those people that win the lottery only to have nothing years later. If you haven’t here’s a story about a few of them: www.usatoday.com/news/nation/2006-02-26-lotteryluck_x.htm  What’s interesting is that despite all that money these people still somehow managed to squander it all away. What happened? My belief is that these millionaires never broke the pattern of their financial blueprint. Financially they may have been rich for a while but they were still deficient in their way of thinking and/or in their habits. In other words, they kept playing the same song (their “blueprint”) over and over again despite the windfall they got. Don’t fall victim to the same mistake.

In a way, declaring bankruptcy is like winning the lottery. One day you had $50,000 in debt and the next day you have a clean slate. Years down the line you may find yourself in debt again because you began doing some of the same things you did in the past that got you to go into debt in the first place. I’m not here to finger point and pass judgment on you. My intent is to help you understand that now is the time to take control of your financial destiny. My observation is that many people walk around not really having thought about their relationship to money, why they behave towards money the way that they do and how they can be masters over money instead of the other way around.

In future blogs I’ll give you specific tips on what you can do to establish control over your financial destiny but for now you have to focus on your “blueprint”. Here are some powerful questions that will help you get started:

What is the biggest fear I have about money? Where did this fear come from? Growing up what lessons did I learn about money from people around me?

What’s my biggest regret financially up to this point? What stopped me from doing that in the past? What’s the story I’ve been telling myself over and over about money?

What does financial stability mean to me? In other words, how do I know that I am financially secured? What needs to happen in order for me to feel this way? Make a list and have this become your checklist that you can refer to know so you know whether you are on track. What can I do right now to make this happen? What am I willing to do to achieve financial stability?

Does financial independence mean something different to me? What’s the difference? How will I know I’ve reached financial independence? Why am I not there now? What needs to change/happen in order to be financially independent?

If I had $100,000 saved up would that be enough for me? How about $500,000? What is the number (and there is a number) that I must saved up before I can say I choose to work not because I have to but because I want to?

What’s one small thing that I could, no strike that, need to do right now to put me on the path to my financial destiny?

This is just a starting point. There are plenty of books and seminars out there that can help you establish these goals. A book I would recommend is Maria Nemeth’s The Energy of Money.  Another book is T.Harv Ecker’s Secrets of the Millionaire Mind. Both books do a great job of helping you explore your relationship to money. Your psychology of money if you will. As I’ve said before, Who is the master, you or money?

Remember now that you’ve declared bankruptcy, your ability to have a positive net worth may be a lot easier to attain now because you may have a clean slate. So instead of focusing on paying off a mountain of debt, you now have the ability to save, accumulate assets and create financial freedom.  The path begins in your mind. I wish you avalanches of abundance so that you may Live & Give Richly!