Rebuilding Your Life Post Bankruptcy

How To Rebuild Your Life Financially And Emotionally After Filing For 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.

About the Author: Carly Lance loves to blog about personal finances whenever she can. She also is employed as the blog and marketing manager at Personal Bankruptcy Canada, a company that deals with people going through bankruptcy in Canada.