Nobody wants to go bankrupt. It is not something most people are proud of, regardless of how it came to be. No one ever grew up dreaming of becoming bankrupt one day.
Going into bankruptcy can take its toll on a person. It is heavy on the heart. Declaring bankruptcy is not an easy decision to make. It has so much negativity associated with it that it can haunt your financial dealings even after you have resolved it. Nobody wants that. And in most cases, it’s hard to recover from it.
It not only affects your financial and credit standing, but it also negatively affects your mental and emotional health. It is one of the reasons why people go through depression.
Know, though, that while it is probably one of the lowest points in your life, should it happen, you can get recover from it and still build a new life afterward.
10 Ways to Deal with and Recover from Bankruptcy to Help You Get Started Again
1. Know that it is not the end of the world.
First things first, no matter how bad things may seem at the time, know that it is only temporary. This is not downplaying what you’re probably going through at the time, but you need to understand that as long as there is breath in you, you can still do something about it.
2. Don’t be so hard on yourself.
Being bankrupt sucks out all the life in you. You realize that you worked hard all your life to get the things that you have only to have them taken away by some things that are beyond your control. Don’t blame nor feel sorry for yourself. Just get up immediately and start rebuilding your life. ;
3. Don’t let it paralyze you.
Often, you’ll see a person who just experienced bankruptcy go into depression and understandably so. After all, he or she just lost their life’s work. But don’t let it stop you from getting up and regaining control of your life. Mourn your loss but don’t get stuck there. Pick up the pieces and do something to improve your situation. You owe this to yourself and your family.
4. Talk to someone about your thoughts and feelings.
This one is critical. You may not feel like talking to someone, but you have to. Not only is this good for the preservation of your mental health, but it can also help lead the way to your financial recovery.
Talk to someone who has been in your situation and get insight from their experiences. These people can not only inspire and motivate you, but they can walk you through the recovery process.
5. Accept your situation and take ownership of it.
The only way to getting over your problem is to admit you have a problem and start taking responsibility for it. Excuses have never produced great results. Accept your lot in life and focus all your energy on moving forward from this failure.
6. Start getting all of your financial affairs and obligations in order.
Once you’ve recovered your resolve, it’s time to recover your life. Take an objective look at what happened and see where things went wrong. Even if you were very organized and meticulous yet still ended up being bankrupt, you still need to maintain that discipline.
Bring order to your finances. This time, be more meticulous with your finances. Manage your debt as much as you can and do your best to live on cash only.
7. Work on a strategy to rebuild your life properly.
Use whatever it is that can give you an advantage. If you need to use a mortgage calculator or to use secured credit cards, do it temporarily. Do whatever it takes to build up your credit again and get you on the road to financial recovery. Carefully plan your strategy and make sure to cover all the bases, so you don’t end up in another bad situation.
8. Find an income stream or two to help you deal with your financial needs.
Following bankruptcy, find other sources of income aside from your job that can help you meet your financial needs and help you build an emergency fund which is one of your priorities at this point. If you’re an entrepreneur, you need to look for a job that will sustain you temporarily until you can get enough to start a new business.
9. Dutifully fulfill all of your financial obligations.
Payments that are made on time reflect very well on your credit history. Doing this diligently helps bring up your credit score faster. If you can set up a system that will automate your bills payments, do it. This will prevent you from forgetting to make any payments which can negatively affect your credit score.
10. Do not listen to the voices in your head that feed you only negativity.
The road to recovery isn’t easy. You will still experience some setbacks and encounter several challenges. What’s important is you do not get discouraged nor lose hope. Don’t listen to the inner voices that only tell you negative things. Condition your mind and set your heart on rebuilding and recovering strong.
Hope is never lost, even if you’re faced with bankruptcy today. With the right strategies, the right motivation, and the right people around you, you can win over it.