Secrets to Surviving Bankruptcy

Bankruptcy could hit hard if you were not prepared for it. Depending on how your case went, you will have lost a lot, including your property, points on your credit score, and your privacy. Many people who have faced bankruptcy often struggle to get back on their feet and live a better life. Your debt is gone, but how do you guarantee that you will move past this with grace and even gain back your original credit score if not more? There are secrets to surviving bankruptcy. Being declared bankrupt is not a death sentence, it is an opportunity for a fresh start. So long as you bring a positive attitude and learn from your mistakes, you will survive bankruptcy with the following easy steps. 

Face the Facts

You are bankrupt, accept it. Whether you are a business or an individual, you must accept that a court has legally declared you bankrupt. It would be best if you accepted that your life will change and that you may not be living in the best situation for a while. 

Tell the People Who Matter

If you are an entrepreneur and filed for bankruptcy for your business, you need to make the employees aware. Call a staff meeting and explain the situation honestly and clearly. Present them with your plans for the company and what happens until they materialize. Give them the option to leave and accept it if some or all of them go.

If you file for personal bankruptcy, you need to inform close family, especially those who rely on you. It would be best if you told your spouse so they can be ready for the changes to come. If you were paying for the upkeep of a family member such as a relative in a senior home or medical bills, be sure to inform them. Let them know of any arrangements you may have made. 

Pay Attention to All Communication

Your case is not over until your plan is confirmed. Depending on the type of filing you made, this can go on over a few years. Therefore you need to pay attention to all communications you receive. 

During this item, you are likely to get trustee reports that detail your plan payment history and how and when the trustee applied your payments to each creditor claim. You will also receive bankruptcy court filings that will outline what happens with your case. Be sure to have a reasonable attorney who can provide you with more details. 

You may also receive communication from creditors. Some of them may be unaware of your filing, while some are merely violating the automatic stay order. Either way, keep these documents as they can come in handy. 

Manage Your Stress

Above all else, you need to stay afloat and in control of your emotional health. The stigma that surrounds bankruptcy can be overwhelming for your mental health. Stress can cause anxiety, and if not managed, you could end up depressed. Focus on positive things to come in the future rather than what has already happened.

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