Rebuilding Life After Bankruptcy

 By: Leeanne Kunnert
The task of rebuilding your life after you have filed for bankruptcy can seem quite overwhelming. It is important to recognize that your life is in the midst of a transformation. Bankruptcy allows individuals to start over; it provides a clean slate where you are in control of your life unlike your previous life which was being ruled by your debt. This article will talk about restructuring your credit rating, finances and emotional health.

Individuals, who have recently filed for Chapter 7or Chapter 13 bankruptcy need to come to terms with their pasts, put it behind them and begin to chart a course of action to regain financial stability. Bankruptcy offers a second chance to individuals. A key element to ensure this second chance is not wasted is commitment. Commit to recovering. The post bankruptcy steps listed below will help to preserve the calm that you feel right after bankruptcy.

The first thing individuals must realize is that they are not alone. Let go of any shame or guilt that you may be feeling. Many individuals find themselves in a financial predicament where they must seek protection with bankruptcy. There is no reason to be disappointed or to allow the feeling of humiliation to takeover your future. To ensure success you must move forward with a positive mindset. Make peace with your past and let it go. There are many reasons that people declare bankruptcy: medical bills, divorce, losing a job and various other personal stumbling blocks. Learn from the mistakes that were made and move towards your fresh start do not allow yourself to dwell in the past.

The next step individuals must take after bankruptcy is to create a realistic financial house with a professional support team in place. It is time to create a budget and concentrate your efforts on making a plan that allows you to pay your bills on time, build an emergency fund and account for the future. Live under your means to ensure that you never find yourself in an unpredictable financial situation again.

Next it is crucial that you begin to rebuild your credit rating. The simplest way to achieve this is through paying your bills on time. Once you have begun routinely paying your bills on time it is important to establish a line of credit. This may mean taking out a car loan or obtaining a small line of credit. It is important to note that after bankruptcy you make need a cosigner and may be required to pay higher than average interest rates. It will take some time but you will once again prove yourself to be credit worthy once again.

Remember to fact check. Never believe anything you hear about bankruptcy without fact checking with your attorney. There are many myths and misconception that surround the bankruptcy process. Bankruptcy attorneys are the best source of truth.

One of the most well known myths is that filing for bankruptcy will automatically disqualify you from receiving a mortgage for ten years. This is false. It is also not true that when you file for bankruptcy you have to wait at least seven years to obtain a credit card. In fact ninety six percent of bankruptcy filers are offered a new credit card within the first year of declaring bankruptcy. Separate fact from fiction with help from your bankruptcy lawyer. They can help guide you through all of the falsehoods that surround building a financial future after bankruptcy.
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In our previous installment on life after bankruptcy we discussed the curveball filing for bankruptcy can throw at you. In this installment we will continue to review ways in which you can rebuild your financial life after filing for chapter 7 bankruptcy or chapter 13 bankruptcy. Bankruptcy attorneys recommend that individuals who have filed for bankruptcy begin to re-establish their credit as soon as they possibly can.
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