Many people going filing for bankruptcy often feel like they are carrying all the weight of the world on their shoulders and it keeps them from moving on. However, with a little bit of effort and commitment, you can piece your life together.
No one, in their wildest thoughts, dreams of filing for bankruptcy at any point in their life. But the reality on the ground tells a different story. More than 800,000 people, notes a Scottsdale bankruptcy lawyer at Barski Law Firm PLC, filed for bankruptcy in 2016. Contrary to popular belief, extravagance is not the only reason that most people go bankrupt.
Some common causes include medical bills, injuries, divorce, job loss and an income reduction. Divorce also features as a leading cause of bankruptcy alongside credit card debt. If your finances have tanked to the point of filing for one, you can still turn your life around.
Let go of the guilt and shame
No one likes to admit they’re having money problems, even when issues are lighting up like a Christmas tree. Unfortunately, this need to project a successful façade is what leads to a mounting pile of debt. It also causes many people to lose their self-esteem after going through bankruptcy.
Don’t let this hold you back. Reconcile with the fact that it happened and focus your efforts on piecing your life back together. Try as much as possible to avoid dwelling in the past as you will only find pain and misery there.
Create an emergency fund
One of the reasons that people accrue massive debts is because they fail to set some money aside for a rainy day. When a tragedy such as job loss strikes, they turn to borrowing on their credit cards to survive. Ideally, you should have enough money to see you at least six months. Since you’re coming out of bankruptcy, this might seem like a pipe dream.
However, setting out to create a rainy-day fund can force you to pay attention to your spending habits. It means that you must refine your money habits and stick to a budget so as out away some savings each month.
Going through bankruptcy is a painful and trying experience that can leave you devastated. Instead of dwelling on it, you can piece your life together and start over.