Rebuilding After Bankruptcy

Posted on Jul 08, 2012 By Bond & Botes, PC

The bankruptcy process is mentally and emotionally exhausting. Sometimes the financial cloud of doom lingers over us for years before we finally take the steps necessary to be able to dig our way out and see blue skies again.

So now that you’ve made the decision  and gotten help from a law firm that helped you navigate the waters of the bankruptcy decision, what’s next? How do you move on at this point?

Now that you can come up for air, it’s time to rebuild your credit rating, finances and emotional well-being. Believe it or not, that’s actually possible and will be a welcome change from the road you’ve just been on.  There was a time when the stigma of bankruptcy was something you had to hide from in shame, an outcast from the financially prudent. But now is the time to let go of that outdated thought and get back to the business of living.

Now is the time to reflect on the mistakes made and create a realistic budget that is easy to work with and let’s you take control of your money rather than you money controlling you. The best thing to do with this new budget is to live below your means rather than just within your means. This will help you rebuild quickly and feel better about your situation. Living below your means will allow you to build that always helpful emergency fund. Living on cash can actually be a gratifying life, especially if you’ve just dug yourself out of a hole.

Once your bankruptcy has been discharged, it will be time to re-establish good credit. Be very careful during this time, it could be that “building credit” is what got you into trouble in the first place. It’s time to take control of your life. Keep that budget in check and see to it that any debt you incur is paid back immediately and on time.

Life after bankruptcy is can be sweet, if you make a plan and stick to it.