Bankruptcy gives you a fresh start in your financial life. But once you’ve received
your discharge from your bankruptcy, you may not know exactly what steps to do
moving forward.
your discharge from your bankruptcy, you may not know exactly what steps to do
moving forward.
1. Collect and file all your bankruptcy paperwork
Be sure to keep a copy of your bankruptcy petition, the 40-50 page document that
details your financial information. Also keep your notice of bankruptcy filing as
well as a copy of your discharge order that you received from the court.
details your financial information. Also keep your notice of bankruptcy filing as
well as a copy of your discharge order that you received from the court.
Why should you do this? Sometimes when lenders are considering you for new
credit, they want to see your bankruptcy papers. It is also important to keep these
documents in case anyone wants to collect on your old debt in the future.
credit, they want to see your bankruptcy papers. It is also important to keep these
documents in case anyone wants to collect on your old debt in the future.
2. Start a budget and review it frequently
Many bankruptcies begin as a result of unforeseen medical expenses, job losses,
or sudden family changes such as divorces or birth of children. Creating a budget
allows you to prepare and set goals for the future. There are many great budgeting
tools you can access through apps on your phone.
or sudden family changes such as divorces or birth of children. Creating a budget
allows you to prepare and set goals for the future. There are many great budgeting
tools you can access through apps on your phone.
3. Start an emergency fund
As part of starting a budget, you will want to designate some funds for
unforeseeable emergency financial events. This fund could even turn into retirement
savings or college tuition savings in the future.
unforeseeable emergency financial events. This fund could even turn into retirement
savings or college tuition savings in the future.
Why should you do this? This fund will prevent you from creating new debt when
emergencies arise. This fund will also make you feel less anxious about your
finances and prevent panic when emergencies happen.
emergencies arise. This fund will also make you feel less anxious about your
finances and prevent panic when emergencies happen.
4. Think about ways to improve your credit
Fresh out of your bankruptcy, you will have little to no debt. This is a great
opportunity to build your credit. However, be careful not to let yourself get carried
away. Begin with a small credit limit, monitor your charges, and pay more than just
the minimum amount every month. Another opportunity for building credit is by
investing in a secured-CD.
opportunity to build your credit. However, be careful not to let yourself get carried
away. Begin with a small credit limit, monitor your charges, and pay more than just
the minimum amount every month. Another opportunity for building credit is by
investing in a secured-CD.
5. Explore financial management resources in the area
Because bankruptcy allows a fresh start on your financial life, it never hurts to learn
more tips and tricks to navigating personal finance in the future. You can check out free
seminars offered by local non-profits or community colleges.
more tips and tricks to navigating personal finance in the future. You can check out free
seminars offered by local non-profits or community colleges.
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