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How to restore your life after bankruptcy

On Behalf of | Apr 25, 2019 | Bankruptcy, Personal Bankruptcy

People wonder if there is life after bankruptcy. After completing the exhausting process, most bankruptcy survivors feel a heavy weight has been lifted. Relief may last a few days or weeks, but eventually, the euphoria might end. 

There is a hidden wall that becomes apparent at the end of the process; people call it “Life after bankruptcy.” During the fight to complete bankruptcy, the future may not seem as important as the immediate urgency of dealing with documents, creditors, attorneys and possibly enduring bankruptcy court.

The good news about bankruptcy

The good news is that many people who have declared bankruptcy have benefited from the experience. They are now debt-free, and if necessary, they can responsibly handle a small amount of debt. The key successful people use is no secret: They pay their entire debt off each month. They do not miss a single payment or make late payments. Developing financial skills is essential—not just for those who have been through a bankruptcy—but for every person who understands that money does not manage itself. 

It is possible to recover after bankruptcy

Bankruptcy can result from a self-inflicted injury in the form of irresponsible financial behavior. People are often embarrassed to admit they turned to bankruptcy to rid themselves of unmanageable debt. The first step to financial health is to let go of the blame and shame.

Bankruptcy offers the same opportunity for a person to emerge stronger and with better financial abilities. Their future appears enjoyable instead of dismal.

Avoid post-bankruptcy vulnerability

The first tentative financial steps can set the tone for a person’s financial future. Even after bankruptcy, people can be servants to old habits. It is tempting to take out a payday loan or grab a new credit card. These are not good ideas. 

After bankruptcy, the survivor needs to take measured, precise steps to avoid another round of financial ruin. People can set up a simple plan. For example, always pay with cash, shop at thrift stores, and eliminate luxuries (yes, it may hurt). It helps to deposit money into a savings account, even if it is only $15 a month. Above all, a person should create and follow a simple budget. The internet is a good tool; people use it to find budget templates, research ways to rebuild credit and learn how to avoid further debt. Those who have overcome bad financial habits did so by making a solid commitment to change. Life can be good again—in fact, it can even be better.

Disclaimer – Attorney Advertising. Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization – not actual clients in pictures and videos. Thomas C. McBride, attorney in Alexandria, LA.