A few years ago, when I realized that I couldn't pay my mortgage anymore, I knew that I needed to do something to correct my finances. It seemed like I just couldn't catch a break, and after losing my job, I knew that I was in trouble. I started looking for new work, but I knew that I needed to fix my credit somehow. I was at the end of my rope, until a friend talked with me about the possibility of declaring bankruptcy. She explained that it helped her to start over. I met with a bankruptcy attorney who was incredible to work with, and I was amazed at how much it helped my situation. Check out this blog to learn how working with a bankruptcy professional could help you.
Following a bankruptcy claim, you will need to do everything you can to start to fix the damage to your credit. You will want to avoid some of the pitfalls that got you into the financial trouble in the first place, so here are some tips for what to do after filing for bankruptcy.
Start Living On Cash
When you file for bankruptcy, you will have to immediately start paying close attention to your finances to ensure you stay within budget. Sit down and plan out exactly how much money you have within the budget for the week, and then take exactly that amount of cash out of the bank machine. Separate the cash into jars and break the amounts down by necessities like groceries, rent, transportation, clothing, and bills, followed by things you can live without, like entertainment. Then you can see exactly how much money you have for each.
Track Your Purchases With A Financial Diary
Every time you make a purchase, you should track it in a financial diary so you can see exactly where your money is being spent. Each and every time you spend money it should be recorded in the diary, from paying the electric bill to buying a coffee. You should also have a column for notes, where you can indicate if the purchase was entertainment, transportation or another type. This will also give you a financial road map that you can use to plan a budget for the next month, so you can plan out exactly the best way to spend your income.
Begin Establishing Credit Immediately
Once you file for bankruptcy, you will need to begin to repair the bad credit that you will have. You can begin by getting a credit card or a small loan and immediately making the monthly payments each and every month on time. Paying the bill on time will allow you to begin rebuilding the credit that has been damaged by the bankruptcy. At the very least, you must always make the minimum payments each month to avoid causing further damage to your credit.
Following the steps outlined above will help you to get back onto your feet financially following a bankruptcy claim. The best thing that you can do is to consult with a professional bankruptcy lawyer that can advise you on the best plan of action to get back on the road to financial freedom.Share