Mary wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

I am bankrupt what do i do now?

Mary”

The Answer:

Dear Mary,

Excellent question.

Being declared bankrupt and having your debt discharged ends one part of your financial life. It buries it but now is the time for your new financial life to be born.

Here are the key steps to focus on next.

• Start Saving – It is time to use this radical change in your financial situation to make it a point to live within your means. That means you need to include a regular savings program in your monthly expenses. Just use this link open a savings account. And set it up to automatically draft your regular bank account each month to put money into your new savings account. Your savings account will help to protect you during this time that you don’t have access to credit card to fall back on. If you need to get a grip on how much money you can afford to save, start tracking where you money goes. I really like the Mvelopes online tool.
• Get Back in the Credit Game – I know, I know, it sounds crazy but bear with me. If your financial life is a history that ends with bankruptcy and then you stop using credit you will not be able to bring your credit score back up. There will not be any new good credit to add. And your credit score is so important in many areas of life, not just applying for credit. But this time, click here to get a secured card that will report your usage to the credit bureaus. And be sure not to use the card for anything that you can’t pay off in full this month.
• Put Your Feelings of Failure Behind – You may feel ashamed, like you have failed or you may feel depressed, that’s exactly how I felt after my bankruptcy but what I learned was that those feelings were created in my head and not a reflection of what others really thought about me. Sure you will have to be judged at times about the fact that you have gone bankrupt but you know what, you and ten million other people have gone bankrupt in the last decade. It’s not like you are alone. Your financial situation needed you to responsibly file bankruptcy so you could begin a new life. You did what you had to do so while it is easy to say, really, let’s move on.

These are the critical basic steps but most importantly, find a way to enjoy life, find gratefulness for the good things around you and like me, give all the hugs you can.

Here is your big hug.

Steve