When a Client decides that bankruptcy is the best option to resolve their debt problems, but hesitate to move forward, it is often from the mistaken belief that their credit will be ruined for 10 years. They are convinced that they will not be able to buy a home, buy a car, get a better job, or get back to a normal life for years after filing bankruptcy. But this is not true. Once you file bankruptcy, you will feel financial stability immediately, and can have a great credit score- 720 or higher- within 12 to 24 months of discharge (for Chapter 7) or confirmation (for Chapter 13), provided you take the right steps.

After working with over 2000 bankruptcy clients, I have identified five patterns of behavior that set apart those people that use their bankruptcy as an opportunity to turn over a new leaf, start anew, and recover from their bankruptcy fast.

1. Facing their fears- Instead of worrying about how bankruptcy could possibly harm them, they get a positive mindset, make a plan to get control of their financial future, and set a course of action to make sure their bankruptcy does not negatively impact their life. Fear of their financial future is not an option.

2. Start immediately- The faster you start, the faster you will see positive results. This sounds obvious, but taking action is very difficult for many people.

3. Open proper new lines of credit, without accruing debt- Clients who open specific lines of credit, but not new debt, recover much faster than those who never touch credit again after bankruptcy.

4. Be intentional- Clients who take action, plan ahead, budget, and complete the 7 steps to a 720 credit rebuilding program we provide them recover faster than those who return to old habits of inaction.

5. Communicate clearly, directly and honestly- Informing relatives, friends and employers that you filed bankruptcy is a personal choice. It is unlikely they will ever know you filed bankruptcy. Sometimes it is necessary to inform a friend or relative if they co-signed a debt, or a future employer if they run background checks. Clients who recover well after their bankruptcy are open, honest, and communicate directly to anyone they feel needs to know about their bankruptcy.

Rebuilding our Clients’ life after bankruptcy is important to us. That is why I wrote a booklet titled Rebuilding Your Life After Bankruptcy- It’s Easier Than You Think. It is free to anyone who requests it, and will soon be available for free download on our website. Of course, if anyone has any questions, please feel free to contact us.