Times are hard. It seems that over the years, it is becoming more and more difficult to get out of debt and improve our quality of life. If you have recently filed for bankruptcy, you should know that you are not alone and you can take action to achieve a fresh start for your complete financial recovery.
According to the American Bankruptcy Institute, the number of bankruptcy filings has increased over the years and the numbers continue to rise. But just because it’s becoming common doesn’t mean it is any less stressful.
Aside from the financial hardships, one may feel ashamed, especially if they’ve been sued to collect a debt. The feeling is overwhelming and it can lead to hopelessness and depression.
But it is not the end. There are simple and solid steps you can take to recover from bankruptcy and have a fresh start.
- Address What Caused the Bankruptcy
Like all misfortunes, it is inevitable to look back to see what went wrong. This may be painful, but it is a necessary step for your complete financial recovery. Try to see where and how you’ve overspent and this time, aim to set a new budget.
It is also good to assess if your job is generating enough income. Maybe it’s time to leave that company and look for a new employment. This could help you avoid the same financial straits in the near future.
- Create Definite Goals
Once you have an understanding of what went wrong and the areas that need changes, it’s time to identify your goals. This is the second step to achieve complete financial recovery.
It is understandable that your credit score has dropped by this time and it’s the perfect time to try to re-establish a healthy credit score. Another goal that you should definitely set is paying off all your debts.
Do these things one step at a time and set small achievable goals apart from your bigger long term goals. To help you maintain focus on your progress, you can pick a few top goals to prioritize and work toward them first.
- Find a New Credit Card Issuer
You may find it difficult at first to find new lenders that will give credit cards, car loans, and other forms of credit to someone who has had a history of bankruptcy or troubled loans, it is not impossible to find a new willing lender.
Beware that the terms may not be the same as before your bankruptcy and they will definitely not be ideal, but it will help you rebuild your credit history slowly but surely.
Luckily, you can take a look at card comparison sites and be able to see your options to get the best deal possible online. Secured cards are great for starting over. They function similarly to debit cards and it’s perfect for people who want to achieve complete financial recovery.
- Seek Support
Your journey to recovery from bankruptcy could lead to isolation. You may be embarrassed to face people again. There are communities both online and in-person that could help you get the support that you need in these difficult times. You will meet people going through the same ordeal and they can help give insights to your situation as well.
- Work With A Legal Professional
Finally, it is important to find a legal professional who is experienced in these types of scenarios to help you get your financial affairs in order. If a lawsuit has been filed against you, an attorney can help assert defenses on your behalf.
