Suze Orman, Financial Guru
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
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

PBS SpecialFinancial Awareness Video Festivalthree year car loando you need life insuranceRich8 month emergency fundraise insurance deductiblelong-term care premiumsFRAsame sex marriage band end FloridaChanging Livesswitch to roth 401(k)community collegeEasy Life Insurance letter to suzePersonal FinanceAshley Springer401Khome budget after tax costMost Influential Celebrities ListinsuranceFundsAARP Social security calculatorSuze Orman's Money WarsSandy Hook PromiseStudent DebtdebtUS Tax CodeGoodbyecredit cardSpendingtaxesschool home buying mistakesAlarm Clockmarriage financial responsibilityThe Suze Orman ShowFICO credit score credit card mortgageFinancial Awarenessinsurance mistakeHow To Build Creditrent vs buymax employer matched 401(k) contributionsavingsLTCget credit cardfinancial independencedon't do five year car loanWall StreetForeclosureHoliday Seasoncostly insurance mistakeTeachSuze approvedstudent loan repaymentBeautySchool of Social WorkRetirement Incomeenjoy saving universal college accessmake saving a pleasureCommunication Skills Fiscal ResponsibilityCory BookerFinancial SystemJose Rodriguezautomatic withdraw to savings retirement planCredit Card Rate Increasewomen outlive menwould you decline a bonus3 step financial road mapgraduationinitial tax break Motherwives should be involved in retirementPrime Rate Rise 2015couple financescredit reportlong-term care television hostTelepicturesNewtownlower mortgage intereststudent loan repayment estimatorLovefinancial argumentsSuze Ormandear suzepresident Obamapercentage men widowed 75-84back door Roth IRAMoney Marketfull retirement ageprotect and provide for minor child Suze Orman ScholarshipSave Us MoneyFinancial EducatorHeartsocial workUniversity of IllinoisPhyllis Shelton expert long-term carePrime Rate Increaseverify retirement plan with HR or plan sponsorgay marriage ban end Florida studentGay RightsFinancial CliffCredit scorecharges on credit cardyours, mine & oursLong Term Care shoppingStudent Debt Crisis8 RulesBank2015 financial roadmapWarner Bros Television Groupget health insuranceone credit cardstudent loan debtsave ForbesForbes Top 10Urbana-Champaignlive below your meansFinal Goodbyemonthly benefit emergency fund waive home inspection bidcar loanLTC shoppingMoney-SavingMortgage Credit Availability IndexFederal Funds Rate8 month safety netGiftsCommencement20% down paymentmobile appFinancial Gift Cliff!00% tuition paidcar leasingprotect dependent Retirement SavingsSuze Orman spouse Kathy Travisbill paying prioritiesMarlo Thomasstore credit cardsHoliday Shoppingno tax on withdrawlsdebit cardmanage student loanshome buying budgetteensdream schoolcnbc alarm clockCollege of Veterinary Medicineretirementemergency fund savingsalternative FICO scorefinancing car Satisfyingprovider of financial supportFICO Scorespecial saving accountFree Debt EliminatorsuccessBaby Boomerspaying for collegeLong Term Care Insurance unexpected expenseretain separate credit cardsInfluential CelebrityEmergency SavingsWashingtonFinancial Solutions For YouInteresttraditional vs roth 401(k)buying a carCredit Card Interest RateSandy Hook Elementary Schoolhigher insurance deductibleretirment savingscollege graduatePost-DivorceMoneypush yourself to save more for retirementBankruptcy401(k) Contributionsmoney vowsGiftGay CouplesLong Term Care premiumsCivil Rightsget the most out of social security Graceteens and moneyretirement accountsCNBCExhibitionsame-sex marriagehome ownershiphome loan credit score below 740 Pay Off Debt Before Retirementstudent loan repayment planbest loan deal increase retirement contribution rateconsider roth 401(k)Overspendingfour steps to retirement savings Young Adult advice for college graduatesHolidayroth iraStudent LoanVeterinary Schoolmarriage inequalityAARP50 over 50FinancialInfluentialsFinancial AdviceOne Wallet At A TimeStock Investmentscar buying mistakesLifestylepercentage of women widowed 75-84University of Florida


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
© 2015 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel