Bankruptcy does not have to be a dead end. Instead, it can be the beginning of something so much better. Unfortunately, most people do not see bankruptcy this way and instead equate bankruptcy with utter failure. Bankruptcy allows you relief from bad financial decisions or just poor luck and an opportunity for a fresh start. By using your mistakes as a lesson on what not to do, you can have a lot of success coming out of bankruptcy. Here are some tips for being successful after bankruptcy.
- LEARN: As already mentioned, the most important thing to do after bankruptcy is to learn from your past mistakes. It is important to identify which financial decisions led you into bankruptcy in the first place and make sure you do not repeat those mistakes. However, try not to be too hard on yourself. The decision to file bankruptcy is hard enough and comes with enough emotions already. Of course, there are most likely factors that were outside of your control, and there is nothing you can do about that.
- PLAN: Create a budget that your income can support and stick to it! Knowing what you can actually afford to spend and sticking to a budget is definitely a formula for success.
- GOALS: Set goals and work them into your budget, such as trying to save a certain amount of money each month.
- CREDIT: Reestablish your credit, BUT slowly. I always recommend that my clients get a new credit card shortly after receiving their bankruptcy discharge. However, use it for a particular purpose, such as just for gas or food, and pay it off each month and on time. With each payment, your credit will start to rebuild itself. However, keep in mind that the credit terms for this first credit card might not be very favorable. The interest rate will mostly be high and the credit limit low. However, as you use it every month and pay it off, the limit should slowly increase. After a while, apply for a second credit card and it should have more favorable terms after you have started reestablishing your credit.
- STAY POSITIVE: Going through bankruptcy can be a very difficult time in one’s life. However, it is important to also focus on the positives of bankruptcy such as the ability to start over again and build something great. If you let your despair keep you down, you will not be any more successful after bankruptcy than you were before. If necessary, seek support or advice. But do not let your despair keep you down!
Many people have come out of bankruptcy and became more successful than they were before bankruptcy. And you can join them! Working with a bankruptcy attorney who can help you prepare for bankruptcy and the recovery thereafter, can be very beneficial. However, keep in mind that recovery from bankruptcy is not going to be quick or easy. It is going to take time and perseverance. Having someone on your side can make all the difference you need. Contact the Law Office of David M. Goldman, PLLC today.