Bankruptcy, or a private insolvency process, is a financial instrument that can be used if you have too many debts and you are unable to deal with them, and you can settle this insolvency process and get rid of all your loans.
Bankruptcy, of course, is not an easy step, as all your property, both movable and immovable, will be auctioned and the money that will be received from them will be returned to the creditors. But after all, after a few years of your return on loans, you will be able to resume a new financial life with no debt and basically start all over again!
But how do you act correctly and what should you start after all the commitments are split and you are born again?
Pay All Invoices In Time
One of the first steps to getting rid of all your credit obligations is to start paying all the bills you have to pay in time and not accrue any more debts. Daily spending and monthly payments should be your priority, as it is likely that if you had to go through an insolvency process, something in your money management process is wrong and you have to start sorting it out.
Start a Constructive Budget
A constructive budget means you are actively working on improving this budget, keeping track of all your income and expenses so that you can draw different conclusions and cut costs and increase your earnings. After bankruptcy, you should seriously think about spending your money and creating a budget where you spend less money than you earn to think about some kind of savings.
Cash collecting is a very important part of improving any person’s financial situation and certainly after bankruptcy if you also had any savings, they were returned to the bank or distributed to other institutions and therefore all your savings must start again. Of course, you should start with the stock backing at first, and then you can think of something more serious, but generating a lot of savings is very grateful, especially if you manage to raise the accumulated money with deposits or otherwise get a percentage increase.
Get Money From Aging
After you have started to build your daily and spare savings, you can start thinking about your old age and start paying your pension at level 3 or how to hedge against different financial situations that you may find in the future. The times when everyone can rely on the state and the state-guaranteed pension have long been past, and now everyone has to think about his financial situation and where he is making ashes and accumulates.
Credits are only taken in case of emergency
After bankruptcy you will hardly be able to get credits and if it is possible then you will most likely have to start with big interest loans with serious collateral, because credit institutions will not trust you. But, seriously think about whether you need it at all, because most likely, if you have already made a bankruptcy once, it has been due to high debt and should you be in debt again for the second time. If you need a credit then think 100 times about how you will repay and devise different reserve plans and only then choose to take this loan when you are 99% sure you can repay it.
The insolvency process itself is long-lasting and the stabilization of the financial situation after this process is long lasting and will require serious work, but slowly you will be able to recover everything you already had and possibly even more!