Bankruptcy can take a toll on your self-esteem and your financial reputation. Coming back after your bankruptcy finalizes requires time and patience.
Focusing on what you can control and taking a proactive approach can make a difference in your success. The right strategy may mitigate some of the negative repercussions.
Change your perspective
A lot of people think negatively about bankruptcy. The reality is that it actually is a great resource to reset your finances. Rather than focus on how it set you back, consider the opportunity bankruptcy provides for you to start over again. Changing your perspective may free up space to make new goals and anticipate a better future.
Uncover the problem
Recognize that bankruptcy does not just “happen.” Consider what went wrong that put you in a dire financial situation. Some examples could be poor money management, a bad investment, overwhelming medical bills or job loss. Pinpointing where your problems began can help you strategize solutions to prevent a similar situation from happening again.
Rebuild your credit
Bankruptcy will ding your credit a bit, however, you can gradually rebuild it with some careful planning. U.S. News suggests applying for a credit card or a secured credit card. Making consistent payments will help you reestablish a good reputation with the credit companies.
A bankruptcy does not have to be the end of the world. Despite the circumstances, you still have control over your finances and the outcome of your future. With time, bankruptcy may be the reason you were able to overcome financial distress and gain financial freedom.