After Bankruptcy: 6 Steps to Financial Recovery (Part 1)

January 22, 2014

 

To recover financially after bankruptcy, it’s important to identify the factors that may have led you to file for bankruptcy in the first place.

To recover financially after bankruptcy, it’s important to identify the factors that may have led you to file for bankruptcy in the first place.

Filing for bankruptcy is an effective way for people who are struggling with an overwhelming amount of debt to start to get back on their feet and slowly achieve a financial fresh start. However, once a bankruptcy case has been processed by the courts, it’s important to be aware of the fact that your journey towards financial recovery is not – in fact, it has just begun. In order to avoid getting back into the situation that led you to file for bankruptcy in the first place and, ideally, to achieve a strong financial standing, here are six tips to follow: 

  • Tip 1: Identify the factors that led to the bankruptcy filing – While a number of different factors may have led to the massive debt that caused you to file for bankruptcy, in many cases, there is one or two more prominent causes that can be identified. For example, did you lose your job and have to cover your monthly expenses on credit cards for an extended period of time? Did you go through a divorce left you financially strapped for some period of time? Did you simply overspend on credit cards for too long?

    Knowing the primary habits and/or circumstances that may have contributed to your former debt and the associated bankruptcy will be essential to helping you avoid repeating these same habits (or getting stuck in these same situations) so that you can minimize the chances you will need to file for bankruptcy again in the future.

  • Tip 2: Set some goals for yourself – Once you know what caused you to become so in debt and need to file for bankruptcy, the next step will be to set some very specific financial goals for yourself. While this may involve a goal of being able to pay off your credit card bills every month, realistic financial goals may also include building up your savings account (to, for example, $10,000), paying off your car loans and/or living by a monthly budget.

    Having two or three specific financial goals will give you something to work towards and will prevent you from sliding back into some of the old habits that may have led to you filing for bankruptcy in the first place.

Be sure to check out the second and third parts of this blog for the other essential tips for achieving financial recovery after bankruptcy.

Colorado Bankruptcy Lawyers

If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.

For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.

Categories: After Bankruptcy, Bankruptcy, Blog, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Colorado Bankruptcy Lawyers, Financial Recovery