Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

The good thing about bankruptcy

October 21, 2013 at 9:31 PM

Bankruptcy rates spiked during the 2008 recession and many were pretty judgmental toward the millions who couldn't afford to pay their bills. But Suze Orman says bankruptcy is the better option over burying your head in the sand. "When somebody really doesn't have money to pay their bills then they should claim bankruptcy and face it right on and start all over again," says Orman.

Many people heeded this advice over the past five years. In 2008, bankruptcy filings jumped 32 percent to 1.1 million and in 2012 the filings jumped to 1.3 million. However, in June 2013, the U.S. courts reported filings closer to the early recession era at around 1.1 million.

Record-breaking filings have some at odds with Orman's advice. "Many gripe when I tell someone to claim bankruptcy," says Orman. "But what if you've got all this credit card debt, mortgage debt and car loans, and you just stop paying all these things because you just don't have the money?" asks Orman of her naysayers.


Watch Video & Read Article

The good thing about bankruptcy

Tag Cloud

Post-Divorce10 year repayment plan costly insurance mistake!00% tuition paiduniversal college accessstandard deduction Suze is my biggest mentorresponsible with moneyTeachgrandchild summer job IRA contributionstudentborrow each year, capitalization is going to pile up Commencementtraditional vs roth 401(k)401(k) Contributionsfour steps to retirement savings increase retirement savings3 step financial road mapBankcomparison shoppingbig results television hostcar buying mistakesstudent loan debt20% down payment avoid feespoint cost offset by savingssave moneyloan necessitymobile apppermanent life insuranceOverspendingsocial workOne Wallet At A TimesavingsForbesPhyllis Shelton expert long-term carehigh premiumskids schedule paymentsno negativitydon't cover cosmetic dentistrynot gender specific alternative FICO scoreroth ira3 savings buckets depreciating asset three year car loanprotect your familyignore 6 month grace period holiday spendingUS Tax CodeUrbana-Champaignbuying car 2016property taxlousy investmentprotect loved ones percentage men widowed 75-84don't use allowance as bribeis it necessarydebtmaintain standard of livingheartachewomen long term careemployer funding HSArising home pricespercentage of women widowed 75-84Revocable Living Trustincrease retirement contribution rateCredit Card Rate Increase19 years cash flow problemwives should be involved in retirementnegotiate points with bank or sellerCredit Card Interest Ratebuy down Goodbyeleave a legacypush yourself to save more for retirementget health insurancePersonal Financehome budget after tax costChanging Livesreferrals women longer life spanNew american Dream avoid burn outpreexisting condition not coveredshop online guaranteed level term policyterm life insuranceRetirement SavingsMoney MarketBaby Boomersinsurance yearly reviewlow credit scorebad decisionswomen live longerdon't do five year car loancut monthly cellular billtake actioncommitjanuary billsreal estate marketfinancial goal phrasecommunity collegeface your financial fearsocial security not going brokeemergency fund FICO credit score credit card mortgageemergency fund savingsprotect and provide for minor child gay marriage ban end Florida pay 100% cashGay RightsPBS Special2016 adjust estimated tax8 month emergency fundpay down car loanhome related tax break bonus zero rate transfer dealsteens and moneywaive home inspection bidsame sex marriage band end Floridaverify retirement plan with HR or plan sponsorconfident of solutionage appropriate chorecouple financesMortgage Credit Availability Indexphysical healthLifestyleGay CouplesAARP Social security calculator2015 financial roadmaprent vs buyretirementpositivedon't buy wantsdon't ignore open enrollmentpay credit debt ASAPLovealways use all paid time offHolidayHDHP doctors in networkincrease emergency savings401Kspeak new goalEasy Life Insurance title insurancecnbc alarm clockTelepicturesHDHP's are not badback door Roth IRANewtownemotional stakesFinancial Cliffno splurge LTCbest loan deal Suze changed my lifepurely financial standpointMoney-Savingfull retirement ageinitial tax break Long Term Care Insurance loved ones dependent on incomeFinancial Awareness Video FestivalBankruptcyGiftRichhousing marketverify wellness screening and programsjuggle multiple financial goalsStudent Loanclosing disclosurepaid vacationAlarm ClockHeartteach importance of helping othersfraudulent returngraduation4 Must Have Documents switch to spouse coverageidentity fraudage appropriate goalsswitch to roth 401(k)better loan ratesdental insurance 50 over 5040% toward financial goalnew carmortgage disclosureFICO Scoremoney vowsultimate compounding giftdangerous retirement planfocus on needsderailed plancost of capitalization calculatorknow before you oweHSA tax savingsloan no longer than 36monthsworst financial mistakeallowance taskautomatic withdraw to savings provider of financial supportStudent DebtFRAmortgageYoung Adult value moneyCredit scorestretch out haircut appointmentsWarner Bros Television Group20% down paymentbudgetunexpected expenseprotect dependent automate student loan paymentsFederal Funds Rate8 month safety netanticipated salaryIRA contribution gifted moneyrefinanceno tax on withdrawlsdebit cardcredit managementloan is giftHow To Build Credit8 Ruleswrite new goalRetirement Incomechildren under 18long term carepay off debtdo you need life insuranceUniversity of IllinoisHDHP'sEric Dodge public service loan forgiveness programVeterinary Schoolsuccessbe good exampleovercome financial fearsUniversity of Floridaco-sign sidelined2016 adjust withholdinglower mortgage interesthome insuranceMass MutualThe Suze Orman Showhome loan credit score below 740 overspend on giftsritual scheduleno waiting perioddon't derail retirement savingsconfidentmeet monthly Civil Rightscommunity bankdental savings planForeclosureWashingtonno retirement funds for down paymentExhibitionSchool of Social WorkMarlo Thomasquick closingFree Debt EliminatorSpendingat worst still pay 75% benefitis it true? overspend on nights outfinancial fearsyours, mine & oursAARPreduce interest rateFinancial Solutions For YouFinancialpowerfulstudent loan repayment planplanincentives for health care wellness screeningPrime Rate Rise 2015file asapAccuQuote.comraise deductiblesdental discount planSatisfyinginterest capitalizationretirment savingsapproved medical 100% tax-freebe true to yourselfpay down student loan debtMost Influential Celebrities Listunsubsidized Stafford loanbecome member financial independenceBeautyno private loanrequire chore in exchange for allowanceDurable Power of Attorney for Health Carestandard rateSelectQuote.comfinancing car retirement accountsbuying a carInterestis it necessary?Staffords this year have a fixed 6.8% interest ratecollege graduatedon't spend social security never insolventlong-term care Suze Orman Scholarshiplearn good financial choicesHoliday Shoppingadvice for college graduatesEmployer Matched ContributionLong Term Care premiumssecured cardkid borrow firstbest interest ratesWall StreetFinancial Adviceloan big picture tax ID theftCollege of Veterinary Medicineno sneaking in feesteach your child good money habitsfederal student loan deferment overspend on dining outLong Term Care shoppingmortgage brokerhome buying mistakesretain separate credit cardsautomatic paymentadd teendo not pay allowance for good behaviorNew York LifeAmy Lacyetcreate new truthSuze Orman's Money Wars6 month waiting periodFinancial Systemitemized deductionone annual feegift not loantaxesdon't blow tax refundwould you decline a bonusbe kind to yourselfLTCi ASAPlower premiumcharges on credit cardSave Us Moneycredit reportmonthly benefit enjoy saving Moneyfinancial concernInvest for savings growthfamily save at least $100 monthlycompare monthly expensesvalentines dayget the most out of social security doctor no longer in networkbuy home you can affordbill paying prioritiescar loanis it kind?multiple lendersno fee transfercut monthly cable billdon't defer interest paymentssave credit unionpay interest while in schoolsame-sex marriagesmall changes Suze OrmanCommunication Skills long-term care premiumsmax employer matched 401(k) contributionmortgage interest tax deductionclosing costs 2% of loanJose Rodriguezmax benefit coveredraise insurance deductibledream schoolorigination fees10% donate to charityFinancial AwarenessCory Bookerlife insuranceEmergency Savingsiffy incomestay positivepublic service career student loan repayment teensconsider roth 401(k)Fundssummer job match income HDHP's are good for youFHA loan feespay high rate off firsthigh deductible health care planonly offered while employed open enrollment review 2015 record year car salesSuze approvedMotherhigh FICO scoreCNBCwomen outlive menAmericans don't use all paid vacation timeInfluentialsbetter termshigher insurance deductiblefinancial argumentsGraceretirement planmarriage inequalityStudent Debt CrisisLTC shoppingInfluential CelebrityAdequate Auto and Home Insurancestore credit cardsnot enough life insurancedangerous money seasonbuy homegift up to 14,000marriage financial responsibilityinsurance mistakemake saving a pleasurespecial saving accountPrime Rate IncreaseAuto Savings student loan repayment estimatorget over life insurance phobiacalculate dependents annual income needslow down paymentpaying for collegeForbes Top 10Final Goodbyegrandparent IRA contribution Fiscal Responsibilitylet them have 50% controlone credit cardFinancial Gift CliffHoliday SeasonSandy Hook Elementary Schoollive below your meanscan you afford itSandy Hook Promisereplace permanent life insurance with termdeath benefit needs for familystudent loan repaymentschool escrowpay more than minimumGiftsletter to suzeno life insurance financially irresponsiblehome ownershipFinancial Educatordear suzepresident ObamaSuze Orman spouse Kathy Traviscar leasingrequired disclosuregift grandchild IRA contributionFinancial Power of Attorneyemployer offered life insuranceinterest on student loansmanage student loansdon't charge a pennyinsurancedeath benefit 20 to 25 times annual incomeAshley Springermonthly dental insurance premiumbalance transfer savings pleasureborrowing plan Pay Off Debt Before Retirementkeep a scheduleStock Investmentshome buying budgetmental healthfocus on new truth credit cardterm insuranceget credit cardbad retirement planningConventional loan PMIunder 18 financial giftreduce monthly paymentreal estate mistakesclosing feesbreakdown projected monthly housing costlower rate

View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2016 Suze Orman Media Inc. All rights reserved.
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel