How to Recover After Declaring Bankruptcy

How to Recover After Declaring Bankruptcy

Insolvency Tablelands, Bankrupt Tablelands, Bankruptcy Tablelands, How to file for bankruptcy
There’s no doubt that are some considerable financial consequences in filing for bankruptcy, and there’s no question that your life will experience some considerable changes. If you’re in this position, don’t be alarmed. The difficult economic times witnessed today means that more and more individuals are filing for bankruptcy. Actually, there are about 20,000 Australians every year that file for bankruptcy. So rest assured, you’re not alone.

Instead of dwelling on the past, it’s important that you look towards the future and attempt to recover as best as possible. Bankruptcy doesn’t mean the end of the world, it just means that some modifications have to be made to secure a bright future for you and your family. So here are a couple of simple strategies that you can use to best recover after filing for bankruptcy.

Psychological recovery

It’s common for those who file for bankruptcy to experience emotions of failure, self-loathing and regret. Whilst it may seem natural have these thoughts, becoming bankrupt is the result of merely another mistake that we all make as humans. You have to stop punishing yourself and look towards the future. Bankruptcy is the initial step towards financial freedom, and recovering from a bad credit rating is easier than you think. The longer you surrender to these negative feelings, the longer it will take to recover. Dealing with your financial problems is the first step in overcoming them, so you’re actually in a better position than you were before filing for bankruptcy.

Self-Evaluation

It’s essential that you look at the reasons why you became bankrupt to make certain you don’t make the same mistakes again. Declaring bankruptcy gives you a second chance to get your finances in shape, so it’s best you make the most of it. Whilst there’s possibly a number of reasons why you declared bankruptcy, all of them probably pertain to poor spending and borrowing habits. So it’s a smart idea to create a list of two or three things that led you to declaring bankruptcy and commit yourself to not making these mistakes again.

Create a budget

Once you’ve rebounded emotionally from bankruptcy, the next step is to make a rational and attainable budget. You’ll want to review your earnings and expenses thoroughly, and figure out a way to save money while still paying all your living expenses. Even if it means that you downsize your house or relinquish some luxury items, becoming financially healthy is your key priority. There are some simple ways to save money, for example eating at home as opposed to dining in restaurants and cancelling your gym membership in favour of walking to work. Don’t forget to include in your budget an amount for unexpected expenses.

Pay your bills on time

The 1st step in restoring your bad credit rating is to make sure you pay all your bills on time. Though this won’t boost your credit rating instantly, it will ensure that your rating doesn’t go down any further. You might want to create automatic bill payments through your bank to guarantee that you don’t miss any payments. This will demonstrate to lenders that you’re financially responsible, and the longer you do this, the better your credit rating will get. This is thought to be the single, most powerful action you can take to restore your credit rating.

Increase your income

If you haven’t presently got steady employment, now is the time to do so. Regular income over time will not only increase your credit rating but it will permit you to increase your liquid assets, presenting you with more choices. If you’re in a position where you can get a weekend job, you should really consider it. Or take a look at your interests and attempt to create a way to increase your earnings by doing something that you love. Cash is king when you’re bankrupt so anyway to increase your income is a terrific idea.

Even though declaring bankruptcy is never an easy decision, it is the very first step in confronting your financial difficulties and learning from the past so you can enjoy financial freedom in the future. It’s essential that you assess the reasons that caused your financial hardships to ensure they don’t happen again. Steady employment and paying your bills on time will improve your credit rating progressively, and sticking to a budget is very important. If you’re considering declaring bankruptcy and need some advice on your options, contact Bankruptcy Experts Tablelands today on 1300 795 575 or visit www.bankruptcyexpertstablelands.com.au


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