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The other day Alpha was out to lunch with a good friend who is having financial issues. After talking, he found out that his friend is faced with bankruptcy. As a result his friend feels like a failure and a loser. In this video men’s style, grooming, fitness and lifestyle expert, Aaron Marino of IAmAlphaM, AaronMarino, and Pete & Pedro talks about that time he filed bankruptcy as well as shares some thoughts about this emotionally difficult time.
Alpha’s bankruptcy was a result of business that trickled down into personal.
Alpha and his business partner wanted to franchise a group fitness facility. They raised money from friends and inventors and then took it to the bank for collateral. They had debt around $400K when all was said and done — that loan was personally guaranteed by both partners. Long story short, it didn’t work out legally and personally. When the business was being shut down, Alpha was paying the staff off of his credit cards accumulating into $500K in debt. He and his partner were both responsible.
The day the business was shut down was the worst day of Alpha’s life.
Alpha’s dream from age 12 years old was going away. Alpha’s plan was shutting down, and he didn’t have plan B. What was he going to do? During this time, it was tough because he didn’t want to file bankruptcy. However, the writing was on the wall. His credit was plummeting, and he was flat broke.
He went to see an attorney who used an equation to discover that Alpha was a candidate for bankruptcy. He didn’t proceed at this point because he wanted to figure out a way to pay it all back. Inevitably, he needed to file bankruptcy. Keep in mind that if he files then his partner would be responsible for the debt, she had to file too.
He saved up $1,200 to pay the attorney, and he filed bankruptcy.
The day he filed bankruptcy, all collection calls stopped. The biggest weight was lifted off of his shoulders. It was an amazing feeling, being free from this debt. He was granted bankruptcy, and his life started over. To this day, he has only one credit card.
The Big Spender vs A Bad Situation
If you got into financial debt because you are a spender and buy on credit, that is a dangerous thing and a recipe for disaster. Get it under control because if you file bankruptcy, you will be back in the same position a couple of years from now. BUT, if you are over your head and can’t see a way out due to a bad situation, bankruptcy is an option if you promise never to fall into that position again. You will be incredibly glad you did. Push that reset button.The sun will rise again, and you will be fine.
