Bankruptcy can feel like defeat, especially to people who are just starting out. If you are a millennial – defined as reaching young adulthood in the early 21^st century — it can be particularly disheartening, as your generation is viewed as optimistic, resilient and bent on success. Having to start over financially may be frustrating, but if you view it as the opportunity to start over with the benefit of learning from previous mistakes, you will find that the emotional downside is temporary, and you have a bright future ahead.

Here are some important tips for you to remember as you move forward:

• As demoralizing as it may be to think about a bankruptcy remaining on your credit report for several years, the truth is that once you stop focusing on it, it will mean a lot less to you. Spend your energy working on rebuilding your credit instead of on the damage that’s been done. You’ve stopped digging the hole you were in and have started climbing out.
• You may feel like you’re the only one this has happened to, but the truth is that you’re one among millions who have filed in the last decade, and in light of the global pandemic there are likely to be many more. You’re in good company, and you have a very good chance of rising above your past difficulties.
• If you qualify for Chapter 7, it will leave you in far better financial condition than filing for Chapter 13, which will force you to continue repaying your debts over a longer period of time. Under Chapter 7, you can start fresh and move forward more quickly.
• If private student loans were part of your debt, you may be able to discharge them as part of the bankruptcy, and even federal loans can be included in cases where your bankruptcy is due to a catastrophe such as suffering a severe and permanent disability.
• Bankruptcy does not prevent you from obtaining a loan in the future, but it should give you pause. A bankruptcy filing is one of the most clarifying messages you can get about taking on only the debt that you can afford to pay back. When you become financially stable again, applying for credit cards is a good idea, as it will help you to build credit. Just make sure that you are not biting off more than you can chew.

Most importantly, if you’re considering bankruptcy, an experienced attorney can help guide you through the process. Contact the Reinherz team today to discuss your situation with one of our bankruptcy attorneys.