Regardless of what your reason may be for filing bankruptcy, whether it’s because you lost your job or there was an an illness in your family that caused your financial situation to spiral downward, etc., filing it has offered you a fresh start and if you are worried about the consequences of bankruptcy, then there are some things you can do to avoided damaging your new financial future.
Following are 4 things you should do after filing your bankruptcy:
1. Form a Plan
One of the primary reasons people end up filing for bankruptcy is that they consistently spend more than they make. You should keep this in mind and educate yourself about how to effectively manage your money after filing. You can achieve this by forming a plan. It is recommended that you consult with your bankruptcy attorney in order to prepare a budget that would help you get started on the right track. Proper money management should be your lifetime commitment. It will not work if you follow this plan for only a few months after your bankruptcy is finalized. You should live within your means and keep a close track of your spending habits.
2. Make Room in The Budget for Savings
You probably already know how rapidly an unexpected financial blow can decimate one’s budget. If you are off work for a few days because of the flu or your car breaks down, then you can easily become vulnerable to a financial crisis, particularly if you don’t have enough money set aside. That’s why it is recommended that you make room in the budget for savings and dedicate those savings towards a retirement fund.
3. Don’t Let Yourself Be Lured into Old Bad Habits
Every time you are about to purchase something, stop and ask yourself if what you are about to purchase is really necessary. If the answer is no, then refrain from purchasing it unless you have already saved enough to purchase it without disturbing your budget. Avoid the temptation to put unnecessary items on your credit card.
4. Watch Out for Scams
Don’t be surprised if you are flooded with offers to help you wipe out your bad credit history or repair your damaged credit score after you have filed for bankruptcy. In reality, the only person who can actually do this is you. Think carefully before you open any new lines of credit and also pay your bills on time each month. Check out all offers thoroughly, searching for the fine print for exorbitant interest rates or hidden fees.
In conclusion, there are many things you can do to rebuild your credit score after filing for bankruptcy. It is recommended that you consult with your bankruptcy lawyer and don’t hesitate to ask questions. Apart from knowing the bankruptcy law, your lawyer can also refer you to a financial advisor so you can properly map out your financial future.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.