Filing for bankruptcy is a big step toward solidifying your financial future. When you file a Chapter 13 bankruptcy, you will work with the bankruptcy trustee to repay some of your debts. Instead of thinking of this time as difficult, you can look at it as a way to refine your money mindset.
As part of the Chapter 13 bankruptcy, you will have to live on a limited portion of your income. The remainder goes toward repaying some of your debts. This is a perfect time to learn how to tell yourself no and to set up a budget. By learning to live on a budget now, you can better manage your money when you are living without the supervision of the trustee in three to five years.
Once the bankruptcy is discharged, you can start to rebuild your credit. This isn't going to be easy. In fact, you might have to start with some low-limit, high-interest cards to get your foot in the door. Make sure that you are using them responsibly. Ideally, you will pay the balance off each month.
Make sure that you apply what you learned in your education courses. This can help you stay on track. Your goal is to live a comfortable life that doesn't lead to you having to file for bankruptcy again. Even though you might not be able to do everything you want, the relief you will feel from being financially free will be worth it.
Just remember that bankruptcy isn't throwing in the towel. Instead, it is a responsible decision that you can make when you are drowning in debt.
Source: Bankrate, "Life after bankruptcy," accessed March 08, 2018