How to Have a Better Life After Bankruptcy
The benefits of bankruptcy don’t stop at the discharge; they extend far beyond into the years after you exit bankruptcy. Bankruptcy is about forging a new path, a new financial destiny that is free from the burdens of old debts and obligations that were impossible to pay. But how does one improve their chances of having a fruitful life after bankruptcy and decrease the chances that they will once again become mired in unpayable debt?
Do Not Reaffirm Debt
Remember bankruptcy is about discharging old debt and giving you a clean slate. When you reaffirm debt you drag old financial burdens into your future. While there are some cases where reaffirming debt may be a necessary evil such as saving a home that has equity and value or keeping a vehicle, generally speaking it should be avoided.
Live Within Your Means
Living within your means is a common cliché used often in our society but rarely followed. What does living within your means really look like? On the surface it means not spending more than you earn, saving for emergencies, investing in your retirement and not buying more house than you can afford. But the essence and benefits of living within your means after bankruptcy is about gaining the freedom and financial stability that frugal living can bring.
Invest in Yourself to Protect Your Future
Invest in yourself to protect your future from the inevitable financial obstacles you will face after bankruptcy. It is estimated that the average individual will experience some type of financial setback at least once every 10 years that could put them into bankruptcy. Those who best equipped to handle these financial setbacks after bankruptcy have invested time and money into improving themselves personally, professionally and financially. For example, post-bankruptcy debtors might benefit from educating themselves about personal finance or gaining extra certification in their field to decrease their chances of becoming unemployed or worse – unemployable after bankruptcy.