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How To Recover From Chapter 7 Bankruptcy

Almost everyone suffers from a financial crisis or two during the course of their lifetime. While you can recover from many of these stressful situations, occasionally you simply cannot. If you have to declare chapter 7 bankruptcy, remember that you have every right to do so. Also, realize that your life is not over. You can take positive steps to restore your credit and your life. 

Save Money

Although saving money may seem like a strange suggestion considering you've just hit financial rock bottom, it will now be easier to achieve. Since you have permanently eliminated your debt, you should put aside a portion of what you had been paying your creditors. Doing so will allow you to function without credit, which you will need to do in the short term. It will also help you establish healthy financial habits. Having a reserve means you won't have to turn to high-interest payday loans or other questionable money sources when you encounter another difficult financial period. 

Bank Loans

Experts recommend that you establish a separate savings account to get a secured bank loan. You should deposit at least $500 into this account and then apply for the loan. Even though you have no credit, a bank will give you this money because they will have a "hold" on your savings until you repay them. You then should make timely installment payments until the loan is paid off. In a few short months, you will have a good credit history with a bank, a real boost to your financial standing. 


Creating a budget is not a glamorous step, but it is necessary. You need to start living within your means so that you do not get into trouble again. You can use an online resource to create a reasonable budget for you and your family. You can also visit various consumer resource sites for tips on cutting your expenses. Learning to pay as you go is difficult, but once you get into the habit, your life will be less stressful and far more enjoyable.

You should not feel ashamed about filing chapter 7 bankruptcy. Many people have had to take this step, and it is a guaranteed right of American citizens. However, you need to take full advantage of your "clean slate." Make positive, proactive choices about how you spend and save your money. Your credit and your entire life will benefit. For more information, consider contacting a professional like those at the Reppe Law Office.