Financial bankruptcy doesn’t have to destroy your goal of financial security or even financial abundance! These four ways to overcome financial ruin are from prosperity advisor and author Paula Langguth Ryan; her tips will set you on the road to recovery and help you achieve your financial goals.
“Bankruptcy is designed to give people a fresh start,” Ryan says. “If you’re losing sleep, your health is failing, your relationships are negatively affected, or you find yourself looking for “ways out” – including harming yourself or doing something illegal – then claiming bankruptcy may be the best option for surviving the overwhelming financial stress.”
Two of Ryan’s recent books are Bounce Back From Bankruptcy: A Step-by-Step Guide to Getting Back on Your Financial Feet and Giving Thanks: The Art of Tithing.
Overcoming Financial Ruin – 4 Ways to Succeed After Bankruptcy
1. Realize that going bankrupt doesn’t mean you’ll never create wealth. Many wealthy people have overcome financial bankruptcy (some more than once!). “When I went bankrupt at the tender age of 21, I immediately went into debt to the tune of $3,000 — I was trying to rebuild my credit,” says Langguth Ryan. “What I discovered was that if I didn’t change the way I approached money, educate myself, and empower myself to make smarter money choices, I was destined to repeat the same pattern again.”
2. Change your money habits, thoughts and actions. To overcome financial ruin, you need to make a fresh start and commit to not taking on any new debt today. Debtor’s Anonymous frowns on bankruptcy and recommends that people pay off their bills. “I’m a strong proponent of Debtor’s Anonymous – and at the same time, I recognize that people can change their money habits and rebuild financially after bankruptcy,” says Langguth Ryan.
3. Don’t rush into external “fixes” for bankruptcy. Getting credit again quickly isn’t the best way to get financial security or get over going financially bankrupt. The biggest positive step you can take is internal — for instance, you need to examine your money personality and beliefs. If you are willing to look at and take responsibility (not blame) for the part you played in getting yourself into debt, you’ll get back on track. If you can realize that bankruptcy was necessary, you may stay on track for good.
4. Take responsibility for your financial mistakes, debt, and bills. Once you take responsibility for your role in the bankruptcy, you’re empowered and can create change. If you’re always blaming something or someone else for the state of your finances, then you’ll always be a victim. You’ll be unable to create the level of financial abundance you desire – and you won’t get over going financially bankrupt – unless you accept responsibility. For example, your brother-in-law might have used your credit card to rack up bills, but you chose not to speak up or pursue the matter legally. In hindsight, is it something you would do again? Probably not. Change those things and you’ll create the financial abundance you desire.
For more tips on succeeding after bankruptcy, read 7 Ways to Get $10,000 – From Refinancing a Mortgage to Asking Mom.
If you have any thoughts on these ways to overcome financial ruin, please comment below…
Paula Langguth Ryan is a prosperity advisor, mediation consultant/coach and author. She offers a monthly newsletter and free reports at the Art of Abundance.
I'm glad you're here! My name is Laurie Pawlik-Kienlen; my husband Bruce and I live in Vancouver, BC with our critters. We can't have kids, and are learning to accept whatever life brings - both good and bad. I have an MSW (Master of Social Work) from UBC, and degrees in Education and Psychology. I hope you say hello below - I can't give relationship advice, but writing can bring you clarity and insight.