Declaring bankruptcy led by heavy debts has deep rooted effects upon our lifestyle, emotions and psyche. However, it is time we clear up the miserable myths and misconceptions regarding declaring bankruptcy and stop considering it as a dead-end. A debtor on filing bankruptcy should be keener to know and learn from his/her mistakes to restart a novel financial career through certain actions and prospects. It is a delusion that declaring bankruptcy signifies the end of credit card facilities. Bankruptcy never means that one cannot re-establish one’s credit report. In fact, from a brighter viewpoint many creditors find it safe to lend a debtor who files for bankruptcy as it means that he cannot re-file for it before 8 years and also because bankruptcy eliminates the debts and not the earning potentials. It is a renewed opportunity to restart an effortless life with least unsecured debts. It is another illusion that declaring bankruptcy is always a result of reckless spending habit. Many people get trapped in this downward financial spiral due to unexpected medical bills, illness, unemployment or divorce. In such cases, bankruptcy acts as a fresh lease of life, when the debtor gets freedom from his debt and reconsiders his financial strength and capacity by planning and following a proper and apt budget. It is time to reprioritize your finances with determination and discipline in order to reassess your needs and wants.
The post effects of declaring bankruptcy brings in scope for learning those lessons which can be learnt only the harder way; so make savings in regular habit. Practice certain activities like avoiding impulsive buying, paying by cash and cutting down expenditures on transportation and other temptations like restaurants, fast foods and fancy items. Rather try to save at least 35-40% of your income and can also invest a small amount in mutual funds and slow risk investment options. Nevertheless the situation brings considerable amount of social, emotional and financial pressures on middle class lifestyle, but then it is not the end of the world. Taking help of a bankruptcy attorney will always help the debtor to deal with the situations more positively and smoothly. Also, make sure to review your credit report and remove all negative entries it contains, that do not belong to you or are incorrect after the bankruptcy filing. Not being able to apply for a credit card after bankruptcy is no more a reality. Nevertheless, many still find it a boon not to get rid of credit card usage forever. But the fact is credit card provides you the chance to rebuild your credit history after bankruptcy, and you can once again enjoy the vital materialist gains as other people do. One can obtain credit after showing records of his consistent employment incomes and signs of financial rehabilitation. Hence, all these points prove that declaring bankruptcy has got nothing to do with starting a new financial career but one should take it as a last respite when all other debt repayment formulae fail to support.