Life after bankruptcy is free from the never-ending creditor phone calls and collection letters, but declaring Chapter 7 or Chapter 13 will not automatically fix your finances. You have to put in work to restore your financial health. Here are steps to take to get your finances back on track:
Stick to a Budget One of the best ways to rein in your expenses after bankruptcy is through budgeting. Add up your essential monthly expenses such as rent and utility bills, then subtract that amount from your monthly take-home pay. Divide the remaining money between saving accounts and leisure spending. Online resources like Mint.com can sync with your bank account and credit cards to do your budgeting for you.
Obtain a Secured Credit Card After bankruptcy, you may have trouble opening up standard Visa or American Express accounts. However, many lenders offer secured credit cards. These lines of credit are backed by a bank account or other property, and allow you to use a card to shop in the same way that you did before bankruptcy. Paying your bills on time and paying off the credit card every month are great ways to show your credit worthiness after bankruptcy.
Put Away Money Every Month After wiping away your debt, your new goal should be to build up a nest egg. A mortgage or car loan may be unavoidable for big purchases, and you may be able to negotiate lower interest rates if you have a large down payment saved away.
Bankruptcy doesn’t solve everything – but it can fix many financial problems. San Diego’s Golden State Law Group has been helping Southern California residents with bankruptcy and debt negotiation for several decades. We know how to use bankruptcy proceedings to simply your life. To see how our lawyers can help you start a debt free life, call (619) 234-3333 to schedule a free case evaluation.