5 Steps To Survive Bankruptcy

"5 Steps To Survive Bankruptcy"

The worst event that could happen to anyone is filing for bankruptcy. Whether you’ve gone through this or are still reeling from its effects, it does feel like the end of world when you have to declare that you’ve lost everything and could no longer sustain the life you used to have.

On top of the financial loss you have to face, you have to live with the stigma that is associated with your name. You have to endure the fact that nobody may want to take a risk on you for any employment or business possibility.

This is the reality you have to contend with day in and day out, and sure it sounds unbearable. However, there’s life after bankruptcy and all you have to do is start believing that it is not one problem you can never survive.

In fact, it may very well be the game changer you need to re-examine your life. You may even draw from the humiliation and isolation you experience to create life-changing decisions that will put you and your family in a better place than where you were before.

The positive impact of bankruptcy

Losing your assets and everything you’ve worked hard for will never be easy to take. Along with that is the fact that your family’s wellbeing may be put at risk.

Bankruptcy is absolutely damaging for anyone involved. It destroys your reputation, the life you’ve built, and the future you’ve been working so hard to achieve for yourself and your family.

It may sound unbelievable, but anyone can bounce back from bankruptcy. You can recover from it and its effects.

As with anything in life, nothing is permanent, not even bankruptcy. The only thing constant is change, and bankruptcy is one event in your life from which you can learn a lot from, move on from, and use to your advantage to rebuild your life.

When you really think long and hard about it, the effects of bankruptcy aren’t all that bad. Being in this situation will prompt you to analyse the decisions you have been making money-wise and what led you to end up losing everything.

What you can draw from this bankruptcy experience is wisdom. You learn from your past mistakes and use what you know now to avoid getting into financial trouble again.

When you learn from your past financial missteps, you will be able to think of better ways to recover from your situation and reconstruct a new and better life for you and your family.

This is not to say, however, that everyone should go through bankruptcy to experience epiphany. It is just one event from the many more that you may experience to take back control of your life. You can use this one experience, though, to see where you can better improve as a decision maker in terms of financial matters.

What you can do to recover from bankruptcy

When you’ve accepted your mistakes and resolved to bounce back from bankruptcy, you can think of strategic steps to ensure it won’t happen again.

Here are some suggestions for you to consider to help rebuild your life after bankruptcy and ensure a better financial future for you and your family.

  1. Make a list of potential reasons that put you in this situation

What led you to go bankrupt? Ask yourself this question to help you retrace the steps you’ve taken in the past that contributed to your financial downfall.

Reasons vary when it comes to bankruptcy. Statistics from the Australian Financial Security Authority reveal that most individuals who get bankrupt may either be due to unemployment or loss of regular income. Other factors may include gambling, legal or medical issues, and credit irresponsibility.

Companies, on the other hand, face bankruptcy due to economy-related factors, failure to keep track of financial matters, and excessive withdrawals, amongst other reasons.

Either one or two of these reasons may have contributed to your bankruptcy, and it is imperative that you pinpoint exactly what you may have done wrong and why things got out of hand. It is important as well that you take note of the steps that you should have undertaken to cushion the impact of your wrong decisions.

By identifying the missteps you’ve taken, you’d be able to know what caused your bankruptcy and make necessary precautions to prevent it from happening again.

  1. Get a quick loan

This may sound impossible given your present situation, but it is definitely possible to apply and get approved for a loan even if you’ve declared bankruptcy.

There are established and reputable lending institutions that offer direct lender loans to individuals no matter their credit background. Perfect Payday, for example, provides quick personal loans to customers despite their poor credit ratings.

Whilst Perfect Payday doesn’t disregard the importance of credit histories, the company doesn’t solely base its decision to grant you a loan on this single factor. It takes into consideration your financial capability to pay and your desire to meet your financial obligations in a timely manner.

This means, despite being bankrupt, you can take comfort in the fact that you can get financial assistance in this time of dire need. You can rest assured you will be given a fair and honest assessment of your eligibility to be approved for a loan.

You may ask how you could even pay off this particular loan if you have already lost everything or this will only put you under more debt. The simple answer is, Perfect Payday will conduct a thorough assessment of your financial situation and check your potential to pay off the loan.

As quick personal loans have a short repayment period, you will have time to recover financially whilst making sure that your basic needs are met.

A quick short-term loan may not be the answer to your bankruptcy problem, but it can help you get through everyday life by giving you access to immediate financial assistance.

Rest assured you won’t be buried deeper in debt as short-term loans have capped interest rates, which means there are no additional charges or hidden fees.

  1. Start making financial-related changes

Often, people tend to be complacent when it comes to their loan repayment obligations. This may be one of the reasons why they couldn’t get out of debt.

So, avoid this habit and start making changes in the way you handle your financial responsibilities. Post-bankruptcy, you have to be more responsible in paying off your personal loans by making sure they are paid off on time. This also goes for any other bills you may have.

Implementing small changes is the first step to recovering from bankruptcy. Even as simple as paying bills on time can make a big impact on your survival.

Moreover, making sure that you now pay your dues on time helps rebuild your credit reputation. Lending institutions will take into consideration the efforts you’ve been making in improving your credit score, which ultimately improves your credit history so that in the future if you need to borrow money, you’ll qualify for better-than-a bad credit type of loan.

  1. Know where you are financially

After bankruptcy, it is crucial to your survival that you know current financial position. This is possible when you check your credit report.

A credit report lists down all the bills, loans, and credit cards you have and the efforts you’ve made in repaying your dues. In short, it gives you a quick summary of all the borrowings and repayments you’ve made in your whole life.

With your credit report, you will be able to know your credit score as well. Also, you’d be able to check your record to see if every debt written there is yours and make necessary steps to amend this mistake.

  1. Discover the benefits of budgeting

After a bankruptcy, you now want to be wiser in the way you handle money. You can do this by setting a budget and sticking to it no matter what.

Be realistic when creating your budget and make sure that you only spend for the things that are important.

Setting a realistic budget allows you to revisit your spending habits and make necessary changes in altering them. This way, you’d be more responsible when making purchasing decisions.

Use these steps to help you recover from bankruptcy. Remember that you can survive whatever financial challenges you encounter as long as you resolve to instill discipline and responsibility in yourself.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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