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Rebuilding Your Life (and Credit) After Bankruptcy

Rebuilding your life after bankruptcy can seem like an overwhelming task. It goes beyond your credit rating and finances and into your emotional well-being. For those who have recently filed bankruptcy or who are considering filing bankruptcy, it is important to know that there is a life after bankruptcy in which you do not have to feel like a financial outcast. It is important to re-frame the way you are approaching your bankruptcy. Rather than seeing it as an overwhelming last resort, see it as a second chance. To start with, let go of any guilt or shame you are carrying. In 2010, personal bankruptcy in the US rose by 9 percent, including 1.53 million filings. Another survey revealed that 13 percent of the US population, or one in eight adults, has considered bankruptcy. You are not alone. Focusing on the guilt of past decisions will not make your current financial situation better. Rather, make peace with the past and begin focusing on the positive future. When you focus your attention on becoming more disciplined in handling your money and finding better financial information, you will find yourself learning and growing from your past mistakes rather than dwelling on them. When thinking about your past financial activities, it is important to consider several key thoughts:

  • How did I get here?
  • What could I have done differently?
  • What have I learned from this?

The answers to these questions will help you re-frame your thought patterns and make better financial decisions in the future. Creating a realistic budget and financial plan is the next key step. A budget will serve as your spending plan, helping you to stay on track. Creating a realistic budget will also help you better identify areas of overspending, such as purchasing luxury items. Rather than living above your means, a realistic budget will help you live below your means and begin building a better financial foundation. Your budget should account for a savings plan, emergency fund, and steps to repaying any debt after your bankruptcy. Focusing on paying off this debt will be one of the best ways to restore your credit. Though a credit card may have gotten you in trouble at the start, getting a secured credit card, which will need collateral like a savings account, will keep you from overspending while rebuilding your credit. One of the best things you can do for yourself when facing bankruptcy is seeking the legal advice of a bankruptcy lawyer. Oswalt Law Group in Arizona offers extensive experience in bankruptcy law, aiding their clients with sound legal advice on their individual situations. Contact the Oswalt Law Group today to begin your journey to financial recovery.

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