The decision to file for bankruptcy is never an easy one. It is often a measure of last resort when everything else has failed. However, bankruptcy is not a permanent situation. It is possible to get back on your feet if you are determined.
Below are some tips that could help you achieve your goals.
Work on your credit rating
Your credit score will take a plunge after filing for bankruptcy, and it is something you need to work on. Accessing credit may not be easy since lenders may be cautious when dealing with an insolvent individual, but there are other ways to go about it.
For example, you could start by being current on existing debts or using customized solutions such as secured credit cards or credit builder loans.
Operate within your budget
It is a no-brainer that you should tighten your belt after filing for bankruptcy. Have a budget and cut out unnecessary expenditures. Take stock of what got you here in the first place and avoid it going forward. Most importantly, be financially disciplined and hold yourself accountable for every cent.
No amount is too little to save. Starting when things are hard will help you build a savings ethos that may prevent such a scenario in the future. Consider setting up an emergency fund, if you can, for those rainy days when you need a soft landing.
How long will it take?
There are no instant results on the road to regaining financial freedom, and it may take some time before you realize the rewards of your effort. While situations are different, it will partly depend on your resolve to get things back on track.
Regaining your previous financial status may take a couple of years, but results could start showing in months. Ultimately, it is a rewarding experience bouncing back from what could be the lowest moment of your life.