Bankruptcy filing is the toughest financial decision that people at financially difficult stages of their lives have to take – willingly or unwillingly. Its outcomes are usually scarier than you could ever think of. It could be your biggest financial nightmare ever. However, it is certainly not the end of one’s life. If you work on a proper strategy, you can even turn this unfortunate situation into something favorable for yourself.

There are two ways in which failure is perceived. Some people take failure as the end of life, and because of the stress and disappointment, they never succeed again in their lives. However, there are also people who take failure as an opportunity to learn from their mistakes. Likewise, in case of bankruptcy filing as well, if you keep the following do’s and don’ts in mind, you can easily get a fresh start in your financial life.


Let me first describe some of the things that some of the things that you should not do after being declared as insolvent by the bankruptcy court.

  • If you want to use a credit card, you should not opt for every credit offer that comes your way. You had better settle for a good and secured credit card on your own after a thorough research and analysis of your specific requirements and all the pros and cons that are associated with the same.
  • If there is no need, you should not accept any loan offer to buy a car or any major appliances.
  • Even after bankruptcy filing, you can get loans at low interest rates. Therefore, do not let the lenders fool you by accepting a loan offer at higher rates. The best strategy is to get a secured card and use the same for the first few years. The objective is to repay the outstanding balances on a regular basis without any defaults. This will eventually help you repair your credit score, which you can use to avail better loan offers.
  • If you are availing a car loan, make sure that the repayment period is not longer than two years.
  • Do’s

    Now, here are some of the things that you should do. Always remember that the more bankruptcy information that you have, better would be the decisions that you would be able to make.

  • Do not forget to get your credit reports and make sure that there are no errors in it. Get the errors rectified, if any.
  • You must work with a credit counselor in order to regain control of your finances.
  • Overall, it is not an exaggeration to say that you can be your best guide or your worst enemy after bankruptcy filing. It all depends on what your approach is after being declared as bankrupt.