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Recovering from bankruptcy – financially

by David Leibowitz, Illinois and Wisconsin Bankruptcy Attorney · Posted in Life After Bankruptcy

Filing for bankruptcy takes courage. It requires overcoming fear, embarrassment and even shame. Recovery from bankruptcy has two components. The first is financial. The second is emotional.

Today, we’re going to focus on steps everyone should take to recover from bankruptcy immediately.

Step 1

Ask yourself what got you into bankruptcy in the first place? And ask yourself what you can do to prevent this from happening again. Bankruptcy is not always preventable. But frequently, people can take affirmative steps after bankruptcy to improve their lives. In so doing, they can reduce the likelihood that they will require bankruptcy again.

Step 2

Identify what went wrong and do something about it.

Underlying cause

Post Bankruptcy Remedy
Overspending Budgeting – mint.com
Unemployment
Under-employment		 Retraining – especially community college
Accident/injury Rehabilitation
Addictive behavior 12 step programs as appropriate
Mortgage foreclosure Foreclosure defense
Mortgage modification
Move to less expensive housing
Personal injury claim Structured settlement
Medical issues Improved health regimen
Improved diet
Stop smoking
Moderate drinking

Step 3

Take steps to restore your credit and your financial life:

  • Budget – use a tool like mint.com
  • Establish savings – pay yourself first
  • Pay your secured debt – like your car note- on time – use auto-pay if possible
  • Check your credit report every six months or so after bankruptcy – be sure that all derogatory pre-bankruptcy references are removed

Step 4

Forgive yourself. You are only bankrupt today. You will not be bankrupt forever. Remember, bankruptcy is a temporary status. It is not a permanent condition.

Tomorrow, we’ll discuss emotional recovery from bankruptcy.

Tagged as: Planning for after bankruptcy, recovery from banrkuptcy

About David Leibowitz, Illinois and Wisconsin Bankruptcy Attorney

David Leibowitz holds a B. A. in Economics from Northwestern University and received his J.D., cum laude, from Loyola University of Chicago School of Law where he also served as Note Editor of the law review. Admitted to the Illinois and Wisconsin bars, he is the managing member of Lakelaw, an interstate law firm with offices in Chicago, Skokie and Waukegan in Illinois and Kenosha, Wisconsin. He is nationally recognized for his work in identifying and pursuing mortgage related claims in the context of bankruptcy. David is a member of both the Illinois and Wisconsin bars and has practiced in bankruptcy courts throughout the country. He is a member of the American Bankruptcy Institute where he is the Co-Chair of the Commercial Fraud Committee. He is ta frequent contributor to the ABI Journal and speaker at ABI events. He is an author and editor in chief of the American Bankruptcy Institute Fraud Manual published in 2010. He is also a member and Director of the National Association of Bankruptcy Trustees, a member and frequent speaker for the National Association of Consumer Bankruptcy Attorneys and numerous state and local bar associations. He is Board Certified by the American Board of Certification in both Consumer Bankruptcy Law and Business Bankruptcy Law. David is also the publisher of Lakeblawg, www.lakelaw.com/lakeblawg, a blog dedicated to consumer and small business bankruptcy and mortgage foreclosure defense.

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