Understanding Financial Problems

Understanding Financial Problems

4 Tips For Getting Back On Your Feet After Bankruptcy

by Letitia Moreno

After you go through bankruptcy, you are going to need to make changes to your lifestyle if you want to ensure that you stay on your feet and don't end up in the same position again. You are going to need to monitor your credit report, figure out where you can cut back on expenses, create a new budget that works for your life, and start saving money again. 

#1 Check Your Credit Report

The first thing that you need to do is keep an eye on your credit report. Your creditors are supposed to discharge your debts after you go through bankruptcy. However, it is up to you to make sure that all of your outstanding debts are actually marked as discharged on your credit report. Check your credit report and if you find any debts that were not marked as discharged, have your attorney follow up with your creditors and get them to take the appropriate actions. Monitoring your credit report every few months is a great way to make sure that you are getting back on sound financial footing. 

#2 Figure Out Where To Cut Back Expenses

Second, you need to figure out where you can cut back on expenses. You can't keep living the same life that you were living before. You need to figure out where you can cut back on expenses. Some of the biggest expenses where you may want to cut back are housing and transportation. Housing can really eat into your budget. If your housing bills are taking up more than half of your income, you are going to want to find a new place to live that allow you to save more of your income. Transportation can also really eat into your budget. If you have a huge car payment and insurance payment, try to switch to a vehicle with a smaller car payment or one that you can outright afford. 

#3 Create A Budget That Works For Your Life

Third, you need to create a budget that works for your new life. It is not enough to just cut back on your housing and transportation costs, you need to figure out how you spend all of your money. Start tracking all of the money that you spend and find out where you are spending your money and where you can start saving money. Set a specific budget for all areas of your life. You need to have a set budget for food, personal hygiene items, and extra personal expenses. It may take you a while to stay within your budget, but it is important to always be working towards that. 

#4 Start Savings Again

Finally, you need to start savings again. Put aside a portion of your income into your retirement fund, and work on maxing out your contributions. Start putting aside a small amount of your income into a personal emergency fund. Having a personal emergency fund will help you avoid incurring debt and getting into bankruptcy again. 

Contact a law firm, like Roberson Law LLC, for more help.


About Me

Understanding Financial Problems

When it comes to keeping your business afloat, there aren't many things more important than looking after your finances. If you aren't careful, financial problems can get out of hand quickly, which can affect your ability to stay in business at all. I run a small business out of my home, and I can tell you that careful attention to your books can make a world of difference. Check out this website for more information about financial considerations, spending, and monitoring your bottom line. I'm not a professional accountant or anything, but by making a few moves in the right direction, you can solidify your business and avoid financial disaster.