4 Ways to Rebuild Your Finances After Bankruptcy


If you’ve survived a major losses, here are four ways to rebuild your finances after going bankrupt or losing everything you own.

You’re not alone if you’ve lost money – many of us are struggling to rebuild our savings or recoup investment losses! These financial tips are from prosperity advisor and author Paula Langguth Ryan.

“The most surprising thing about bankruptcy is that most people wait too long to declare it because they don’t think they can afford it,” says Ryan. “But, there are ways you can reduce your bankruptcy costs and still have a lawyer guide you through filling out and reviewing your paperwork, so you can file as your own attorney (pro se).”





If you have any questions about bankruptcy, please ask below! For more info about money and abundant living, read Ryan’s Bounce Back From Bankruptcy and Giving Thanks: The Art of Tithing.

And, here are her four ways to rebuild financially after bankruptcy…

4 Ways to Rebuild Your Finances After Bankruptcy

1. Create a spending plan so you know exactly where you should be spending your money (for more info on spending plans, read 4 Steps to Setting and Achieving Your Budget Goals). Look at your income what you have to spend. Write out your financial goals and the steps you can take to get there. Make your spending plan achievable, with small steps, and slowly rebuild your financial confidence.

2. When you receive any income, don’t do anything with it for at least 24 hours (preferably 48-72). Receiving financial bonuses or windfalls (a tax refund, an inheritance, a bonus), we feel uncomfortable and out of our comfort zone. Our initial reaction is to get rid of financial windfalls as quickly as possible, to bring us back to our “comfort” level of lack or struggle. For help, read 7 Tips for Managing Financial Bonuses or Money Windfalls.

3. Make sure any credit card you get is actually helping you rebuild your credit. It should have at least a 25 day grace period before interest starts accruing, and should report as unsecured to all three major credit bureaus. To rebuild after financial bankruptcy, pay the card off in full each month and get in the habit of only spending what you have. If you find yourself carrying a balance at the end of the month, don’t charge anything else until it’s paid in full.

4. Use your debit card for recurring charges, such as Netflix or a gym membership. You may have to charge a larger expense, like a car repair or new washing machine, to your credit card.  If you can’t pay your credit card off in one month, you don’t want your balance to keep growing!

If you’ve borrowed money from your rich parents, make sure you take steps to protect yourself financially.

If you have any thoughts on Ryan’s ways to rebuild financially after bankruptcy, please comment below…



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Paula Langguth Ryan is a prosperity advisor, mediation consultant/coach and author. She offers a monthly newsletter and many free reports, like How to Travel Without Credit, at the Art of Abundance.







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