Jay Swanson learned one of his earliest money lessons as a teenager in Pullman, Washington, when his parents helped him take out a line of credit to fix his car. At the time, debt seemed like a normal part of financial growth.
Despite holding jobs from a young age and developing a strong work ethic, Swanson admits his financial habits were far from disciplined. “My early education in money was work hard and then throw it all away,” he recalls.
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That initial $16,000 line of credit was just the beginning of his financial troubles. Over the years, he accumulated more debt through student loans, credit cards, and investments in creative projects, including publishing fantasy novels and funding a friend’s tech startup. By 2017, Swanson was drowning in $86,500 of debt and struggling to keep up with monthly payments.
Struggling to stay afloat in paris
In 2017, Swanson moved to Paris, where he was fortunate to have a rent-free place to stay. However, his financial woes continued. His monthly debt payments amounted to roughly $2,100, while he earned only $2,300 as a tour guide. With such a tight budget, he barely had enough for food.
“When I was here for the first summer, I was only really eating whatever I got tipped,” he says. “It was a very hungry summer.”
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The turning point: declaring bankruptcy
Recognizing that his financial situation was unsustainable, Swanson made a tough decision—he declared bankruptcy. He filed for Chapter 7 bankruptcy, which allowed him to eliminate most of his debts instead of entering into a structured repayment plan as required in Chapter 11 or Chapter 13 bankruptcies.
While he acknowledges that bankruptcy isn’t the right path for everyone, Swanson believes it was the best option for him. “I’m grateful that I declared bankruptcy when I did because it completely changed my life.”
Overcoming shame and accepting bankruptcy as a financial tool
Initially, Swanson struggled with the idea of bankruptcy. He had been raised to believe that “a real man pays his debts.” He worked tirelessly, convinced he could dig himself out of the financial hole, but the numbers told a different story.
“I worked hard. And I completely thought that it was a hole that I could dig myself out of,” he says. “But when you look at the math, there was no way I was ever going to dig myself out of that hole short of winning the lottery.”
He takes full responsibility for his financial missteps but also wishes he had received better financial education early on to avoid such pitfalls. Once he moved past the stigma, Swanson came to view bankruptcy as “a tool in the toolbox that a lot of people use.”
By eliminating his credit card and other personal debts, Swanson could finally redirect his income toward building his business and improving his quality of life in France. He still carries student loan debt, which was not discharged in the bankruptcy, but without the crushing weight of other financial obligations, he had room to grow.
Why bankruptcy isn’t for everyone
Today, nearly eight years after filing, Swanson barely feels the impact of his bankruptcy. However, his experience is unique because he left the U.S. for Paris, where American credit scores are irrelevant.
While bankruptcy freed him from overwhelming debt, it temporarily damaged his credit score. According to Experian, filing for personal bankruptcy can lower a credit score by as much as 200 points, and it stays on a credit report for up to 10 years. In the U.S., this can make it difficult to secure loans, rent an apartment, or even find certain jobs.
“If you can pay off your debts outside bankruptcy, you should,” bankruptcy attorney David Leibowitz advised in 2022. “However, if your wages are being garnished, your car has been seized, and you’re being hounded by collection agencies, bankruptcy may be imperative.”
Because Swanson lives in France, he avoided many of these long-term consequences. He has since rebuilt his financial standing, taken out loans responsibly, and grown his business. The only significant challenge he faced was securing debt consolidation under his American business, which was more expensive and cumbersome due to the bankruptcy on his credit report.
A lesson in letting go
Looking back, Swanson has no regrets. “Sometimes you just realize you’re fighting a real uphill battle purely for pride’s sake, and you don’t have to,” he says.
For those in similar situations, Swanson’s story serves as a reminder that while bankruptcy is not an easy choice, it can provide a fresh start. Financial literacy and responsible decision-making can prevent such challenges, but when all else fails, sometimes the best option is to let go of pride and take the necessary steps toward financial freedom.
