Bankruptcy

Filing a bankruptcy is a horrible feeling. Many choose this option as a last financial resort after trying everything to fulfil their financial obligations to creditors. There are times that bankruptcy is simply the only responsible choice for all parties involved. How do families recover from a bankruptcy? Does filing a bankruptcy ruin all future financial opportunities by destroying your credit?

The primary emotion that most people feel is guilt and shame. However, there are businesses and corporations that file bankruptcy that we never know about, it happens. Your creditors will not be happy, but you are the one restructuring your financial future.

Take a close look at why you had to file bankruptcy. Was it due to a bad business deal or did a spouse leave you holding the card (no pun intended) on a financial quagmire? The economy tanks and you lose your job or your hours get cut and meeting your financial debt becomes unattainable. The reason matters to you because when you look deep and answer the question of why you will learn how to move forward with a new perspective on financial responsibility and your relationship with money.

Learn new financial management skills. Take some classes or enrol in a seminar or two that discusses a responsible, financial lifestyle. The more you understand how finances work the better equipped you are to move forward making sound decisions. With each positive step forward, your confidence increases and you will be able to look back on the bankruptcy as exactly what it was – a lesson learned.

Give your self-esteem a break. You are not your money. Your identification is not tied up in the financial choices – good or bad – you make in your life. Take a close look at who you are, who you feel you are and why, be honest. This is not an easy task, in fact you probably will not want to look that closely at yourself, however, to move forward this step is very important. If you do not look closely in the mirror, you will never honestly make sound financial choices. In which case, you may end up seeing yourself before a judge with a second bankruptcy filing.

When you have a firm grip that you are a separate entity from your money, you will move one step closer to living a financial life free of guilt and shame.