Here we will discuss, what happens when you declare bankruptcy. You should always sit down and try to figure out that how will it affect you. For more information, please visit our website: http://nichollsco.com.au/how-will-your-life-work-once-you-become-bankrupt/

1. How Will Your Life Work Once You Become Bankrupt?
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 Upon obtaining the protection of bankruptcy you will not notice
anything different. You will get up and go to work the same as you
have always done. Life goes on.
 Within the first couple of weeks the phone calls from creditors will
stop as creditors become aware of your bankruptcy.
 You will have certainty, knowing that creditors can not pursue
garnishee notices or writs of execution against you. Your wages will
be for your needs.
 Your stress levels will start to decrease as the pressure pertaining to
money diminishes.
 From feedback we have received it typically takes about 3 months for
stress levels to return to normal. Having said that, we note that
everyone is different.
 It is important for you to make sure that the benefit of bankruptcy is
not limited to the removal of liabilities that you cannot pay.
 Bankruptcy should also improve your quality of life. To assist with this
process, we give you the following suggestions:
Call ‘Time’
The dynamics of your life will likely have changed as a consequence of the
financial pressure you have been under. Take a step back and assess how
your life is working and whether you would like it to change. What are your
priorities?

2. How Will Your Life Work Once You Become Bankrupt?
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For example:
 Do you want to spend more time with your spouse?
 Do you want to spend more time with your kids?
 Do you want to pursue a hobby?
 Do you want to take time to smell the roses?
 Do you want to pursue studies?
 Do you want to change jobs?
 Do you want to pursue a new career?
 Do you want to play more sport?
 Do you want to get fit etc?
Identify what caused your financial problems and
learn from your experience
 There is nothing wrong with making mistakes but it is wrong to not
learn from your mistakes.
 Below are some examples of what people have told us caused their
financial problems and actions they took to prevent the same
problem from happening again:

3. How Will Your Life Work Once You Become Bankrupt?
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 Excessive use of credit cards – decided to only have a Debit Card
in the future to avoid the temptation to spend without regard.
 Inability to manage money – sought budgeting training by asking
friends who could budget to show them how it is done and
provide coaching support.
 Gambling – sought help from counselling services and joined a
group of people who were also trying to beat a gambling habit.
 Debts from failed business – sought employment as his skillset
and talents were being underutilised due to the distraction of
having to run a business for which he had not been properly
trained.
Identify where you want to be in 3 years time and
10 years time
Having liabilities that you cannot pay puts a lot of pressure on you and
your family. Bankruptcy is a circuit breaker and creates a great
opportunity for you to reassess where you are at and where you are
going.
The 3 years of bankruptcy can be very formulative for future years. Many
people aim to work on the essentials of life during bankruptcy and
recover from what they have done without during the period of extreme
financial stress. For example, start to get some new clothes, replace
household items that are broken, start having holidays, join a gym,
commence studying etc.

4. How Will Your Life Work Once You Become Bankrupt?
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What would be your plan for the three years of bankruptcy?
We also recommend to persons considering bankruptcy that they have a
think about where they want to be in 10 years time and how they will get
there. Some of the answers we have received to this question are:
 To be living stress free and enjoying life.
 To have the kids educated and to be starting to think about
retirement.
 To have saved for retirement.
 To own a home and be making significant inroads into the mortgage.
Where would you want to be in 10 years time and how do you plan to get
there?
Bankruptcy resolves unmanageable debt and creates opportunity. What
that opportunity is – well, that’s up to you!
Contact Us :
Nicholls & Co.
E-mail : alan@nichollsco.com.au