While nobody wants to think about filing for bankruptcy, it’s your only real option in some financial situations. If you’re feeling overwhelmed by medical debt, student loans, consumer debt, and a mortgage, wiping the slate clean and starting fresh can be an excellent strategy to rebuild your personal finances. Yes, you’ll potentially tank your credit score, but with the right guidance and a stronger focus on personal finance fundamentals moving forward, you won’t repeat your mistakes.
While filing for bankruptcy isn’t easy, it doesn’t have to be as painful as you might be imagining it. With the right game plan going into your bankruptcy filing, it doesn’t matter if you’re filing for Chapter 7 or Chapter 11 bankruptcy‚Äîyou’ll be able to move forward with your head held high. Here are just a few ideas to keep in mind as you weigh the pros and cons of filing for bankruptcy, making the process a bit more straightforward and hopefully less of a burden on you.
Take care of your physical and mental health.
Just like being cheated on, filing for bankruptcy can take a mental toll on your personal health. As such, as you’re looking for debt relief and a fresh start, the first thing you should do for yourself is to improve your self-esteem and set up ways to find peace of mind. Of course, once your bankruptcy case is settled, you’ll likely feel that your financial problems aren’t weighing on you as much. However, it’s not a bad idea to start up an exercise or yoga regimen or even begin meditating as a way to deal with some of the negative thoughts that can sometimes accompany going through a bankruptcy case and really facing your financial issues head-on for the first time.
Work with a trustworthy lawyer.
The filing process for bankruptcy can be quite involved, especially if you have overwhelming debt across multiple credit cards and loans. In these sorts of situations, it makes sense to reach out to an experienced lawyer so that you can get a free initial consultation and learn more about your legal options. Finding a legal team with years of experience working in bankruptcy law can be crucial to you getting high-quality legal advice, and it’s always best to find someone with your best interests in mind as you weigh debt relief options. The attorney-client relationship is an important relationship to spend some time researching before you commit to a legal team, so consider looking for local options to see if you can find a good fit to help you through each step of the bankruptcy process. There are plenty of bankruptcy lawyers in Louisville, KY, and around the country, standing by waiting to help you settle your legal matters.
Get in a credit counseling program.
If you’ve gotten into a financial situation that’s bringing up negative emotions and are worried about repeating these mistakes after you’ve gone to bankruptcy court, it’s not a bad idea to seek professional help by talking to a credit counselor. Financial counseling isn’t a bad thing; in fact, if you have difficulty managing your money, you may find that the ideas and concepts you’re exposed to in credit counseling will help you answer important questions you may have about debt and how to use money responsibly. Bankruptcy can be a second chance, but only if you put in the energy and effort to learning from your past. You can find these sorts of insights in a credit counseling or financial literacy course that gives you the fundamentals to use this healing process to get better with your money.