Filing for bankruptcy is a traumatic experience that can leave many people with little hope for their future. Yet once all of the necessary paperwork is filed, victims of bankruptcy can actually breathe a sigh of relief. The initial shock of partaking in the bankruptcy process can be harrowing, mainly due to the constant reminder of a one’s previous inability to stay afloat. If you have successfully closed the chapter of your life related to bankruptcy, there are ways to boost your morale and move on with your new, debt free life.

Avoid Wallowing in Guilt and Shame

After filing for bankruptcy, it is common to feel a sense of guilt and shame for letting your finances become unmanageable. Although it is important to reflect on your past and have a brighter future, there is no benefit to dwelling upon it. The first step in moving on is to forgive, and from there you can move forward.

Make a Financial Plan for the Future

To help rebuild your life, create a plan for staying within your budget and raising your credit score. Creating a healthy financial plan can boost your emotional well being and help you let go of the past. It is a good idea to create a strong support system around yourself in order to help you overcome your past financial strife.

Stay Within Your Budget

Be sure to spend within your means, and pay all your bills on time. We sometimes tend to spend above our means as a way of keeping up with certain social trends. However, living slightly below your means can allow you to save money, and then reward yourself later. Whether you want to take a trip or purchase something special, creating a budget that accounts for your personal needs is crucial to maintaining a lifestyle you can afford and that makes you happy. It is also recommended you build an emergency fund to help pay for unexpected expenses, such as medical bills or vehicle repairs.

Rebuild Your Credit

Many times, people who file for bankruptcy do so due to large amounts of credit card debt. There is a misconception that, once you file for bankruptcy, you should no longer open any credit cards. In fact, opening a secured credit card and charging a small amount each month can help you slowly rebuild your credit. It is important to continuously pay off your debt each month, and if the secured lender sees you borrow responsibly, they are more likely to increase your limit. They may even turn your secured credit card into a traditional credit card. All of this can help increase your credit score, and make your bankruptcy truly a thing of the past.

Consult a Bankruptcy Attorney

If you are drowning in debt and contemplating filing for bankruptcy in the Danville, Avon, Plainfield or Brownsburg areas, contact Chris Arrington today. He is an experienced bankruptcy lawyer with extensive knowledge of Chapter 7 bankruptcies, and can advise you on your legal rights.