Life After Bankruptcy- Here Are Four Things You Can Do To Minimize Any Negative Impacts To Your Personal Reputation
Life after bankruptcy is never easy, yet it’s the first step on the road to financial recovery. However, both individuals and businesses may feel their reputation is beyond repair in the wake of declaring bankruptcy.
It’s understandable, particularly for a business, as public opinion means a lot, and when the opinion is shaped by the fact you have gone bankrupt it can be hard to recover. Even on a personal level it can be difficult, as friends and family that know of the circumstances may look at you differently.
Here are 4 things you can do to minimize any negative impacts to your personal reputation after declaring bankruptcy:
1. Start Budgeting
Not only does budgeting help you recover financially by allowing you to rebuild credit and reduce debts, it’s a good way to reduce negative impacts on your reputation.
This is because actively budgeting highlights the effort you are making towards recovery. This showcases financial responsibility, whether on a personal or professional level, and will also be big step towards financial recovery.
The idea of someone not learning from their mistakes can have negative impacts on their reputation, so it really can help to know you are trying hard to rectify the financial mistakes of the past.
2. Tell Only the People You Trust
Unless you have a position of fame, you are under no obligation to tell anyone about your bankruptcy. So, don’t feel the need to tell anyone you don’t trust, as they simply have no right to know.
This gives you time to consider how to further reduce negative impacts of your reputation – if this is even necessary.
Remember, bankruptcy will mostly impact your financial life (and even then, it’s not permanent), so your reputation may not even be impacted, especially when fewer people know about your circumstances.
3. Make it a Story About Recovery
Even just the word “bankruptcy” carries negative connotations, so when people hear it they can’t help but think negatively towards you and your reputation. To help minimize this, be sure to make the story of your bankruptcy about recovery.
Rather than wallowing in the past, you should take the time and effort to explain how this incident has taught you lessons and will help you going forward.
Be committed to personal and financial recovery, and your bankruptcy will naturally become a story about recovery – not many people will remember that you went bankrupt if you have the courage and will to recover from it.
4. Avoid Frivolous Spending
Not many people have money to throw away after declaring bankruptcy, but as old habits die hard many continue to spend beyond their means. This is never going to serve your personal reputation well, as it’s another indicator of an unwillingness to learn from past mistakes. This should be common sense for most people.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.