After Bankruptcy: Your Next Moves
The period before and during your bankruptcy might have been a worrisome part of your life. Once you get your discharge from bankruptcy court, moving on and having a healthy financial life is likely what you want to do. However, without these actions, that could be tough.
Identify Bad Financial Behavior
Whatever the root of your financial problems, being honest about that is vital for avoiding the same situation in the future. Did you wait too long to seek financial assistance? Were you slow to pay bills because you were impulsively spending on leisure items? Start to specifically identify those areas where your decisions led to bankruptcy. Then, adjust behavior accordingly. If you were overspending on frivolous items, set a monthly limit. If you ran into unexpected bills, commit to increasing your savings account contributions.
Pay Bills
Every financial decision taking place immediately after bankruptcy should be taken seriously. Paying bills a few days too late might have been acceptable pre-bankruptcy, but now you must pay each of your bills by their due date. This will restore your credit rating sooner. If you're unable to meet your responsibilities, consider seeking additional income or finding ways to eliminate unnecessary expenses.
Wait on Loans
Because you don't have creditors calling every moment anymore, you may feel enough relief to start making large purchases. You might already be looking into new vehicles, for instance. However, understand that your credit score took a hit after bankruptcy and you'll have to slowly raise the score again. While it's lower than usual, realize that interest rates are likely to be rather high. This could make loan payments very high and you could risk falling into the same kinds of problems that made bankruptcy a part of your life. If possible, wait until your financial situation is more stable before looking for loans.
Start Saving Regularly
A savings account is a tool that may most assist your financial recovery. Being able to draw on saved funds to handle unexpected costs can be a relief and can help avoid further financial mistakes. However, many people want to save but never seem to put much cash away. To commit to a strong savings plan, ask your bank to transfer set amounts into a special, separate account throughout the year.
Your financial life can be rebuilt with these various tasks. A lawyer who offers bankruptcy attorney services can also discuss smart, healthy actions to take.
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