When the economy is uncertain, it’s no wonder why so many previously financially stable families and businesses find themselves struggling more than ever before. When it comes to maintaining a business in a tough economy, it’s not always easy—and sometimes, business owners are all but forced into a bankruptcy filing.
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Fortunately, a bankruptcy doesn’t equal the end of financial freedom for a family or small business. In fact, there are plenty of ways to bounce back after a financial hardship. Getting credit after filing for bankruptcy can be intimidating, but thankfully, it’s not impossible. All you need are a few simple tips on how to rebuild a financially bright future after a difficult fiscal year—or years—and you’ll soon be on your way to financial freedom and fiscal responsibility in no time.
Ask a Cosigner
After a bankruptcy filing, applying for any amount of money will be tricky. With a speckled financial history, banks might not trust a bankrupt person right away. This is when your trusted team of family members, friends and business colleagues will become imperative. In a shaky economy, a bankruptcy filing doesn’t equal irresponsibility, and someone should step forward to cosign a loan or lease.
Lean on Loved Ones
A bankruptcy filing doesn’t just hurt financially. In fact, it can be an emotional strain on an entire family. Be honest with yourself and your loved ones, and never try to live a life you can’t afford. It’s important to share your financial struggle, and lean on loved ones for support and encouragement.
Once you’ve begun to feel more comfortable in your new financial place, you’ll want to start small financially before recreating your pre-bankruptcy life. Borrow small amounts of money and consider renting rather than taking on a huge mortgage. Baby steps will help you regain your financial sea legs.
Now that you have an essential financial toolkit for rebuilding your life and your bank account after a bankruptcy, facing an uncertain economy shouldn’t be so scary. In fact, as long as you’re armed with the right knowledge base and a great team of legal and financial professionals, setting all the right documents into motion—should the time ever come—shouldn’t cause an extra headache. Remember to have a strong financial plan in place, should your business ever need a boost, and know the right people to call and ask for help.
Getting a business back on track is similar to getting a family budget back on track after a bankruptcy filing, and it’s imperative that all your employees or family members know the drill. Keep a trusted team around you, and remember that a bankruptcy isn’t the end of your future, and you’ll surely face the business world with a great amount of confidence.