Rebuilding Your Life Post Bankruptcy
Bouncing back from a bankruptcy is challenging. However, just because you filed for bankruptcy doesn’t mean your life is over. You can still lead a rewarding life and be financially savvy post-bankruptcy. Here are just a few of the steps you’ll want to take to rebuild your life:
Let go of the negative emotions. Bankruptcy can make you feel like a failure. Just remember: Nobody is perfect. Dwelling on negative emotions is going to make it so much harder for you to make a positive fresh start. Instead, acknowledge that it happened, then resolve to rebuild your finances in a smart, savvy way.
Know what is expected of you. Bankruptcy can change many aspects of your life. Do some research to learn what is and is not legal. For example, you will have to answer truthfully if a form or application asks if you’ve ever filed for bankruptcy. However, if collections agencies continue to call them, you can let them know your debts have been discharged to get the calls to stop. Realize that getting credit for things like cars will be more challenging, but not impossible. You’ll likely face higher interest rates on the credit you’re able to get.
Start rebuilding your financial life. Use your bankruptcy as a stepping stone toward a healthier financial life. Learn to create a realistic budget. Spending well within your means is a great way to get started. You may have to scale back your way of living from your pre-bankruptcy life. However, a solid financial budget that you stick to can help you regain a sense of normalcy relatively quickly.
Make all your payments on time. You should pay any bills on time from now on. Set up reminders or automatic bill pay to ensure that this happens. Staying on top of money you owe helps rebuild your credit and finances.
Look for small amounts of credit. You can start rebuilding your credit almost immediately following bankruptcy. Look for a credit card that offers low limits and pay it off in full each month. You may want to consider a secured credit card. Just make sure that the card you choose reports to credit bureaus. This can serve as additional incentive to pay off your card monthly.
If you’re considering or filing for bankruptcy, start planning your post-bankruptcy life right away. If you’ve already filed, it’s not too late. You can start taking steps to regain financial health today.
Always take up-to-date advice from a qualified professional.
The editor of Capital Research Institute digest, and pursuer of relatively interesting information. Simon has a Masters Degree in Creative Writing and Journalism from the University of Wales, and is a photo-journalist and writer whose written and photographic work has been represented by the AFP news agency and appeared in newspapers across Europe and Asia.