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She cameout of bankruptcywith a net worth of around $150,000.
Less than seven years later, she has catapulted her net worth over sixfold to $840,000.
Heres how you might bounce back financially, too.
A Chapter 7 or liquidation bankruptcy involves selling off most of your valuable assets to pay off creditors.
I had rental properties that were upside-down on debt and produced negative cash flow, Smith explained.
They lost her money every year, rather than generating it.
That took time and plenty of long work weeks, of course.
But it ultimately let her grow her profits from just a couple thousand each month to over $10,000.
She picked up aside hustleas a freelance writer.
That added another few thousand dollars of income each month.
Even more important than the income, it let my husband and me sleep easier at night.
He still earns a modest salary of under $50,000.
Meanwhile, they enjoylower living expenses overseasand lower US taxes through the foreign earned income exclusion.
The IRS waives regular income taxes for expats, up to the first $130,000 per adult in 2025.
We aim to live entirely on my husbands income, while saving and investing mine, said Smith.
At first, most of the growth in their net worth came from them adding money each month.
But over time, their investments started compounding on themselves.
They earn over $2,000 each month inpassive incometoday.
But we plan to keep investing at least $5,000 each month through the rest of our 40s.
I never want to feel that helplessness again that I felt when going through bankruptcy.
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