Chapter 7 bankruptcy: it can be a chilling idea to those hesitant to ask for help. Some high profile people choose this path to redemption when their lives, and then finances, spin out of control.

Recently, a very successful sports management figure (the man who reportedly inspired the character from “Jerry Maguire”) declared bankruptcy after years of fighting alcoholism and the business debts that his addiction contributed to. His cautionary tale teaches two lessons: focus on the important when things are going well and find a way to amend the costly errors.

After years of trying to resolve legal and financial issues, Steinberg decided to ask the courts to help sort out the mess. Bankruptcy is the legal pathway to cleaning up or restructuring your personal finances. The process considers all debts and claims against all assets and income, and then settles out the accounts in an equitable decision.

Bruised pride and disappointments may linger, but economic and business issues resolve more quickly than they would otherwise through bankruptcy court. Steinberg wants to move on with his life and begin making up for the past.

The common financial advice makes perfect sense. Work a job, pay your bills, save some money, put away for retirement, etc. But sometimes we just don’t have control of events or what might ail us. When the unexpected or tragic hits, we may find our reputation sullied and a financial disaster thrust upon us.

Bankruptcy is a chilling term, yes, but it’s also method to redeem our economic lives and repair our reputations.

Source

The Associated Press: “Sports agent Leigh Steinberg files for bankruptcy,” Bernie Wilson, Jan. 12, 2012