Some people fear bankruptcy while many others seem to think it is an easy way out of difficult financial circumstances. It is actually neither of these things. Bankruptcy can be a scary experience but it could also provide you with a great opportunity for starting over. Here are five essential steps to take on the road to bankruptcy recovery:
#1. Self- evaluation
The first thing to do when you go bankrupt is to take out some personal time to evaluate yourself and your business to find out where you went wrong. Working with a financial counselor would not be a bad idea, and will help prevent you from making the same mistakes all over again in the future.
Map out a clear, and very detailed plan, and goals for future use of your finance. You should be careful how you spend your money, so that you do not acquire debt all over again.
#3. Monitor your credit records
You are entitled to access to your credit history at least once a year. You should check it for accuracy and any problems should rectified immediately.
#4. Follow the rules
You should learn how the system works; for instance, paying your bills on time helps improve your credit score. Another important factor is how much money you owe compared to how much money you earn.
It might take some time but with if you follow the advice we’ve given and with the right motivation, within a year or two you can get back on your feet and establish a good credit score, as you recover from bankruptcy.