Declaring bankruptcy will give you a fresh start and allow you to start pursuing your financial goals in a new way. These four ways to overcome financial ruin are from prosperity adviser and author Paula Langguth Ryan; her tips will set you on the road to recovery and help you achieve your financial goals.
One of the most popular books on succeeding after financial bankruptcy is Credit After Bankruptcy: A Step-By-Step Action Plan to Quick and Lasting Recovery after Personal Bankruptcy. And, two of Ryan’s recent books on overcoming financial ruin are Bounce Back From Bankruptcy: A Step-by-Step Guide to Getting Back on Your Financial Feet and Giving Thanks: The Art of Tithing.
“Bankruptcy is designed to give people a fresh start,” Ryan says. “If you’re losing sleep, your health is failing, your relationships are negatively affected, or you find yourself looking for “ways out” – including harming yourself or doing something illegal – then claiming bankruptcy may be the best option for surviving the overwhelming financial stress.”
Overcoming Financial Ruin – 4 Ways to Succeed After Bankruptcy
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1. Realize that going bankrupt doesn’t mean you’ll never create wealth
Many wealthy people have overcome financial bankruptcy (some more than once!). “When I went bankrupt at the tender age of 21, I immediately went into debt to the tune of $3,000 — I was trying to rebuild my credit,” says Langguth Ryan. “What I discovered was that if I didn’t change the way I approached money, educate myself, and empower myself to make smarter money choices, I was destined to repeat the same pattern again.”
2. Change your money habits, thoughts and actions
To overcome financial ruin, you need to make a fresh start and commit to not taking on any new debt today. Debtor’s Anonymous frowns on bankruptcy and recommends that people pay off their bills. “I’m a strong proponent of Debtor’s Anonymous – and at the same time, I recognize that people can change their money habits and rebuild financially after bankruptcy,” says Langguth Ryan.
3. Don’t rush into external “fixes” for bankruptcy
Getting credit again quickly isn’t the best way to get financial security or get over going financially bankrupt.
The biggest positive step you can take is internal — for instance, you need to examine your money personality and beliefs. If you are willing to look at and take responsibility (not blame) for the part you played in getting yourself into debt, you’ll get back on track. If you can realize that bankruptcy was necessary, you may stay on track for good.
4. Take responsibility for your financial mistakes, debt, and bills
Once you take responsibility for your role in the bankruptcy, you’re empowered and can create change. If you’re always blaming something or someone else for the state of your finances, then you’ll always be a victim. You’ll be unable to create the level of financial abundance you desire – and you won’t get over going financially bankrupt – unless you accept responsibility. For example, your brother-in-law might have used your credit card to rack up bills, but you chose not to speak up or pursue the matter legally. In hindsight, is it something you would do again? Probably not. Change those things and you’ll create the financial abundance you desire.
For more tips on succeeding after bankruptcy, read How to Deal With Your Money Problems.
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If you have any thoughts on these ways to overcome financial ruin, please comment below…I can’t give advice on overcoming bankruptcy, but you may find it helpful to share your experience.
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Paula Langguth Ryan is a prosperity advisor, mediation consultant/coach and author. She offers a monthly newsletter and free reports at the Art of Abundance.