Bankruptcy gives you a chance to make a fresh financial start. Rebuilding your life after bankruptcy can be a difficult task. The whole process of rebuilding your life involves three steps which include your credit rating, finances, and your emotional well being.

Steps of rebuilding your life after bankruptcy

First step

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The first step is to let go of the guilt and shame. Most people who file for bankruptcy are met by shame and guilt. Such people feel disappointed with life and often feel like failures. These feelings can prevent you from thinking straight on what you can do to change your current situation. When you come through this, you have to set your mind straight and get advice so that you don’t repeat the same mistake you did to bring you to bankruptcy.

Second step

The second step in rebuilding your life after bankruptcy is to reflect on the bankruptcy. Think of what brought you into your current situation. Think of what you could have done differently. After that, enlist yourself with a support group or organization with good people who can help you overcome the problems you go through after becoming bankrupt. The people you find in this support groups should be positive people who will guide you through a success path.

Third step


The next step is to create a budget and pay your bills. After getting bankrupt, it is a good time to become serious about your budget. It will help you control and manage your finances and prevent you from making debts. Come up with a way that will help you pay your bills on time to enable you to restore your finances.

The other thing you can do after bankruptcy is to rebuild your credit card. To rebuild your credit card, you will need to change your entire lifestyle such as living life a little lower than before. This means living slightly below your means and making small budgets. This will help you to rebuild your credit over a short time. Here are some of the ways on how you can rebuild your credit:

  • Credit counseling. A credit counselor can show you how to live within your means when you are bankrupt and also help you pay your debts.
  • Get a secured credit card.
  • Make timely payments on your bills or the nondischargeable debts such as student loans.
  • Review your credit reports once every year to ensure there are no mistakes.

There are many stories that come up when one is declared bankrupt. This information, however, is not true and one can get out of the situation if you are determined to. For example, there are those who say that when you get bankrupt, you will be disqualified from getting a mortgage for ten years. This, however, is wrong because you can get an FHA home loan. The above points will help you rebuild your life after bankruptcy.