The Canadian government created the current bankruptcy laws because it realized that people, often through a series of misfortunes compounded by crisis decision making, can end up with a debt so crushing that it removes all possibility of meeting the basic necessities. Bankruptcy gives you a new start on a life with freedom from the constant worry of having more bills than your income can ever meet.
Take advantage of this new start by building new money habits. Don’t be ashamed to get help with this. Use your counseling sessions with your bankruptcy trustee to find sources for future guidance and support. There are financial counselors and all sorts of debt support groups out there. If your dreams have a financial component, then figure out how much you need and create a realistic plan to get there. It is absolutely possible.
“Don’t let your past decide your future.” Frederick Bliss
Many people think that they will not be able to get credit after bankruptcy. This is not true; you will be able to borrow money after bankruptcy. It will just be more difficult than if you had a good credit rating. Your credit rating can actually get better following a bankruptcy, providing you follow a few practical steps. Once your bankruptcy is discharged, you can pay bills on time and build up cash reserves and take other actions that will rebuild your credit score.
You may even be thinking that you never want to go into debt again because of the stress that led up to the bankruptcy. Going into debt is a different kettle of fish than having access to credit. Most people require a mortgage to buy a home. If you want a newer car, you will probably need to use a loan or lease to afford it. If you need to book a flight or make a reservation, it is difficult to do so without the use of a credit card. Debt becomes a problem when you start using credit to make purchases that don’t fit your income level. But not having access to credit can make living in the modern world difficult.
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