Bankruptcy can seem so humiliating and ugly. But if you find yourself having to face the issue, do so with head held high and confront the issue head on. You will not be the first person who experiences bankruptcy and you certainly will not be the last. A host of celebrities have declared themselves bankrupt, in fact the Duchess of York is facing it right now. Hardly anyone will be judgmental as it is an everyday occurrence, more so with the global economic crisis in play. Fortunately, there are a host of steps one can take and resources to utilize, to help one survive and rebuild their lives during these very trying times.
Talk with financial experts:
You may be feeling quite alone right now, a little overwhelmed with what is taking place. The financial and emotional turmoil associated with bankruptcy can be alleviated if you associate yourself with a network of experts and support groups who will do all in their power to help you through this.
Groups like ‘Debtors Anonymous’ offer a 12-step program to help you address you financial situation and poor financial habits. They will help you learn how to make choice decisions in future. You will gain some counseling and very prudent advice which will help you to get your finances back on track. Attorneys, financial advisors can help you learn how to formulate a very sound financial plan as well as clever strategies to mitigate the impacts of your bankruptcy filing. You do not have to go through this alone.
Learn from your mistakes:
Address and learn from your mistakes. Now is the opportune time to re-evaluate your financial habits which got you to this point in life. You may not have any assets now and you may not have any access to credit cards of any type of credit whatsoever for quite some time now. You will no doubt have to rely on cash alone and certainly won’t be able to over extend yourself now.
You can now take the steps needed to acquaint yourself with better financial discipline and learn how to keep track of your typical spending pattern. It is imperative that you do as this will help you to stay abreast of paying bills and basically surviving. You can now formulate a budget and forecast your financial future by knowing how to cut back on spending and so forth.
Work on rebuilding:
Don’t become and ostrich and bury your head in the sand. While this is a very trying time, one of the worst things you can do is to just sit back and take things as they come. There is a life after bankruptcy so start to apply for credit cards right away. You will obviously have a hard time getting approved so try for secured credit cards where you put up cash as collateral.
It will no doubt be money out of your back pocket but it will be the only way for a while, for you to start rebuilding a good payment history. You will of course notice the high interest rates if you do get approval, and this should motivate you to try to pay more than the minimum each month.
The more you pay back the quicker you regain your integrity and a good credit history. While using credit it not really necessary it will be beneficial if you wish to purchase a car, home or start a new business. Don’t rush in without financial advice though, this should be done strategically to rebuild your credit history, not to go on a shopping spree.
Rethink and promise yourself this will never happen again:
Make a commitment to yourself that this will never happen again. Hopefully you will have learned by your mistakes. You do not wish to go through this type of catastrophe over and over again. There are rules and regulations set in place making it very harder to file for bankruptcy.
If this is the second time you are filing, it could actually be rejected. Therefore it is imperative that you now make good financial decisions. Repeat bankruptcy will only ruin your chances of good credit for ten years or more. The consequences could be worse than you ever imagined.
Author’s Note: Bankruptcy is not the end of the world although it will feel it at the time. There are ways and means to regain your credit and get back on your feet. You must think logically, endeavor to make intelligent financial decisions and make use of the support and resources on offer. Have a spending plan, monitor your credit reports and never, ever, make light of the bankruptcy. Source of information is directly from 25 years of personal experience in the financial industry.