Bankruptcy is not just a financial distress but is a painful, life-changing experience as well. If you think that you will not be able to recover from it, you are wrong… and that way of thinking will not help you at all. In this article, I will share a few ways and some steps to rebound and recover from this financial hit.
1. Evaluate yourself and the situation.
The first step would be to take time for a self-evaluation. You have to face the reality and understand that you had mismanaged your money and that you need to learn from that mistake. Evaluate and identify the mistakes that you did that lead you to your current situation. There are credit counseling services that can help you deal with your situation and help you with what to do in the future.
2. Set new goals for the future.
Establish a clear plan and specific objectives in achieving your goal. It is important for you to have a clear picture of what you are working on.
3. Don’t spend on anything that is not a necessity.
This should be highly observed. If you want to recover, you need to stop having unnecessary purchases. During this period of time, you should set your priorities straight and just use your money for essential things like utilities, bills, groceries, medical fees or your child’s education needs. No shopping or traveling for now. Don’t worry, there’s plenty of time for that when you’ve successfully recovered.
4. Sell pre-loved items.
Go through all your belongings – clothes, shoes, bags, books, your kids’ old clothes, toys… etc. and find things that you are not using anymore. After you de-clutter your closet, garage or the whole household, list these items for sale online or probably a yard sale. If you don’t want your neighbors to see you selling your stuff, there are a lot of stores like Craigslist or eBay where you can sell your pre-loved belongings.
5. Find ways to make more money.
Maybe get a second job? Or a freelance job online? Whatever it is, it will really help you rebound from bankruptcy.
6. Be positive.
Although your situation is emotionally stressful and devastating, keep in mind that it is not a hopeless case. Just think positively.