What You Can Do to Pick Yourself Up After Filing for Bankruptcy
If you’ve had to file for bankruptcy, chances are you feel like there’s no bouncing back. You may feel like there’s nothing you can do and that your credit is completely ruined for all time. However, there are some things you can do to pick yourself up and brush your bankruptcy past off of your shoulders. No matter how you feel in the moment, there is always a path forward.
The first thing you should do after going through bankruptcy is to reach out to a lawyer. Lawyers will be able to help you set foot in the right direction. There’s a chance that sketchy lenders will reach out to you and offer you money in the months to come because they see you as an easy target. A trusted adviser or bankruptcy law firm will be able to steer you away from these bad actors and make sure you don’t get taken advantage of.
After reaching out to a lawyer, there are some additional steps you can take at home. Start by making a new budget. Figure out exactly how much money you need to spend over the next few months and write it down. See if you have any room for money to put into the bank for saving purposes, or if you’ll have any leftover money to do and buy things you want instead of things that you need. However, it’s more important at this point to save money instead of spending, so try and cap your “want” purchases as much as possible. There are lots of great online resources for creating a budget, so take your time when putting together your new monthly spending plan.
For now, focus on paying your bills on time, which can really help you get back on the right financial track. Soon, it will become such a habit that you will be able to continuously pay when you need to, eliminating the chance of getting behind on your bills and further damaging your credit score.
In the months to come, you will also have to avoid making any larger purchases. If you had previously depended on a car to get to and from work, then it may be time to learn to live without a vehicle. Unfortunately, for your own financial wellbeing, you should plan not to make any big purchases or take on new debt until you are back on an even footing. This might mean a long adjustment process as you get used to public transportation or a lower standard of living, but it’s an important step on the road back to financial prosperity.
Finally, it’s important to hold onto hope during this process. The time immediately following going bankrupt can often be just as stressful as the months leading up to it, but your life will get better as time goes on. When you file for bankruptcy, it’s important to note that you’re not alone. U.S. bankruptcy court statistics show that more than 1.5 million people file for bankruptcy in the average year, and it’s important to think of bankruptcy as a new beginning, which it is.