Filing for bankruptcy can be a long and draining process and often follows a personal crisis. Once your bankruptcy has been discharged, you may find yourself in a dark place where you don't know what to do next. Here are some steps to take after your bankruptcy.
Going through a bankruptcy is not easy. You may be feeling embarrassment, shame and even depression. Assess and accept your feelings. Remember that many people go through bankruptcy after a difficult life experience or simply because of personal mistakes. You are not perfect, and that is okay. You can only move forward from where you are.
If you feel like your emotional needs are beyond your control, see a therapist. You may need professional help to get you through this time.
Make a Commitment to Yourself
Make a promise to yourself that you will pay your bills on time and make financially responsible decisions. Put this commitment in writing, and read it to yourself once a week or each time you feel like spending more than you have.
Create a Tight Budget
Develop a budget that has you living below your means rather than at them. Do not spend any extra money. Put it away in a savings account as a safety net instead.
Slowly get yourself back to a place where you have some discretionary spending, but only after you have lived several months only spending money you have budgeted for a specific purpose.
Apply for a Secured Credit Card
You are going to want to rebuild your credit as soon as possible. You can do this by paying your bills and by getting a secured line of credit from a credit card company. This means that you secure the card with a specific amount of money. You will forfeit this money if you don't pay your credit card bill.
Avoid a Traditional Credit Card
You may be surprised to get several credit card offers after your bankruptcy. Beware of these cards. Credit card companies know that you cannot file for bankruptcy again for 8 years. They want to take advantage of that by getting you to run up a big bill and then harassing you for the money. Don't fall for it.
Pay Existing Debt Promptly
If you still have a mortgage payment or a car payment after your bankruptcy, pay your bills promptly. This will go a long way in rebuilding your credit and keep you from slipping into a situation that gets out of control.
There is life after bankruptcy, and you will be able to rebuild your credit more quickly than you think. Take it slow and make responsible decisions, and your bankruptcy will be nothing but a memory. For additional help with bankruptcy management, talk to a bankruptcy attorney like those at D Derk Demaree Attorney at Law.Share