Just as every action has an equal and opposite reaction, bankruptcy too has repercussions. Rebuilding your life after declaring bankruptcy may seem like a daunting task- starting anew on building your credit ratings, finances and emotional stability; but it can prove to be tremendously rewarding at the same time.

If you have recently filed for bankruptcy, it is essential for you to know that life after bankruptcy does not have to be about being a financial recluse. Rather, it is about a second chance at reforming your life and protecting yourself against future financial disasters. The following three steps will help you speed up your financial recovery.

No Shame No Guilt

Berating yourself in the aftermath of shame and guilt will only make matters worse. It will hinder your progress towards a new reformed life. People are forced into declaring bankruptcy often enough, be it due to unemployment, medical bills, or other personal setbacks.

A positive approach to the issue would be to make peace with your situation, making reforms, and moving on without self-pity or any negative thoughts.

Realistic Budgeting and Existing Bills

After bankruptcy, you need to be more watchful of your funds. Start off by listing down your cash inflows and outflows. Doesn’t matter if you have made one before or not; now is the time you need one more than ever. Plan your spending in a way that you do not end up stacking needless debt. Set aside an emergency fund which could come in handy if, God forbid, a calamity strikes out of the blue. Also prioritize paying your bills on time. You might want to consider setting up automatic bill payments, and of course, do not forget to pay your rent on time. Paying your current dues on time is the single most important step towards restoring your finances and credits.

Rebuild Your Credit with a Secured Credit Card

Improve your credit rating after bankruptcy by getting a secured credit card. This card will limit your credit to the amount you deposit in the account. Aim to progressively rebuild your credit by restricting your spending to minimal amounts as you work on paying off your existing debts as agreed. One thing to remember is that you stay away from secured cards that charge high fees.


It is particularly important to also keep yourself surrounded by the right kind of people. Friends, family, members of the church or others- people who encourage you, support you and guide you to a financially and emotionally stronger future.


You can always seek advice and counsel from professionals like the ones employed by GTA Credit Solutions to have a sound plan for rebuilding your finances and credit after bankruptcy.