Personal Finance

How To Get Your Finances In Order After Bankruptcy

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While experiencing bankruptcy is tragic and bouncing back is challenging, there are some strategies to get your monetary train on track.


You are feeling isolated and helpless due to the recent loss of your assets, bank accounts, and primary source of income. Declaring bankruptcy can shake one’s confidence in many ways. However, you need to be reminded about the brighter things ahead. Is there any place to go to than up? The best thing that you can do now is to pick up the pieces and put them back together.

The first step is to make a strong commitment. Change your financial habits and be ready to perpetually follow through a plan.


You must analyze the overall financial circumstance that you are in, especially the events that led up to your downfall. Figure out the financial mistakes you made in the past and avoid repeating it in the future.

I have to admit that some setbacks are due to factors that are beyond your control (e.g., layoffs due to recession). While others are due to poor financial decisions. For instance, you became addicted to retail therapy and exhausted all your income on designer goods. You skipped out on emergency fund in favor of your fashion sprees. This is why you must come up with a plan to dig yourself out of the financial trap.

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A new budget will help you rebuild your wealth by placing some constraints on your spending. Treat this as a map that will guide you to your financial goals. Now, let us start with the income. It is most likely that you are left with a single source of income that pays a minimum amount. Search for other part-time jobs or additional streams of income that can aid your journey. Face the uphill battle with a realistic budget.

Find ways to ensure that you are spending less than you are earning. I know it is not easy at first but, you have to endure the tides. Cut the unnecessary spending that you can spot in your previous budget. Rather than purchasing a smaller flat, ask your friends or family if you can crash their homes and pay a “rent” for the meantime. Lastly, sell your mint condition items to earn more money on the side.


Contrary to popular belief, bankruptcy will not dissolve all your debts. You are not entirely safe yet! Although many of your unsecured debts were discharged, other forms of debts may still be on hold. This includes child support and student debt.

This is why you must gather and organize your financial documents. Determine all your obligations and list them down. Then, figure out various arrangements to pay off each one.


The graceful bamboo stands firm in a beautiful sunny day. But, it is not always sunshine and rainbows. As strong winds gush through the forest, the graceful bamboo sways with the breeze. Be pliant like a bamboo. Embrace the strong winds of life much like this graceful creature does!

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Image Credits:

No plan is entirely perfect and roadblocks are inevitable. Do your hardest to rebound from every setback and reverse the financial situation. The worst thing that you can do right now is to give up!

Sources: 1 & 2

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