Life After Bankruptcy: Three Amazing Stories of Surviving Financial Downfalls

| August 28, 2012
Life After Bankruptcy

Life After Bankruptcy

Natural disasters may be easier to accept, as it is after all, inevitable. But once you came across a financial downfall, you’d surely be remorseful for overlooking risks and creating bad decisions.

However, depression was not the answer for these three stories which showed how bankruptcy actually boosted them to a better future:

The Vallejo Bankruptcy

Roads unkempt, residents suffering from unemployment, public services delayed and Victorian houses all empty—this is how the city of Vallejo in California looks like. Before, Vallejo is the home for a struggling society of 116,000 workers and aspiring innovators. Now, it needs to start from scratch.

But its economy’s demise was not due to the city filing for bankruptcy on June of this year. In fact, this saved them from what seems to be an avalanche of debts brought by ill-advised infrastructure projects, the closure of the city’s biggest economic booster (the Mare Island Naval Shipyard), and  overlooked commissions for workers.

Although there’s a lot to improve and much more to develop quickly, the Vallejo bankruptcy brought its citizens closer to strive for the recovery of their dear city. Through bankruptcy, Vallejo spared itself from almost $132 million of debt for societal and medical obligations, which if not prevented, may totally eliminate them from the map.
It is difficult, but Vallejo citizens are still strong on their conviction that this tragedy will open up better opportunities. And despite the financial crash, the bond between its citizens and government has never been stronger than ever.

Downey’s Downward Spiral

In 2009, California’s Downey Regional Medical Center filed for bankruptcy after it accumulated $100 million worth of debt. Last February, the hospital took the risk of putting its land as collateral to pay off $57 million hospital debt.

By doing this, it has been granted with loans to cover all other debts. In fact, on July of this year, it has reached a breakeven with its losses. The hospital is even planning to replace its old conference room for the convenience of the staff and the patients.

Downey has learned to prioritize creating quality business models to make sure that this won’t happen again.

McMahon’s Struggle

Whether it is a publicity stunt or not, you cannot deny how US Senatorial candidate Linda McMahon sincerely related her bankruptcy story to potential voters. She narrates that she filed for bankruptcy when she was pregnant. But now, her recent tax returns show that her annual family income reached almost $35 million.

Her party did not show any bankruptcy files, however, to attest how far they have gone in debt. But if this were true, McMahon’s life is the perfect example for a complete turnaround from bankruptcy.

Keep in mind that when you go down, the only way to go is go up. It is difficult to accept bankruptcy, but life does not end there. Just like these three stories, it can actually give you a chance for a fresh start.

About the Author: Thirdy Rosales is doing marketing consultation for Debtconsolidation.com.au. This financial institution provides assistance to some personal monetary issues such as dealing with bad credit loans, providing debt consolidation loans and handling bankruptcy issues. You can follow him on Twitter @Tweetendshout.

Life After Bankruptcy:  Three Amazing Stories of Surviving Financial Downfalls

 

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