Four Important Steps to Take After Bankruptcy

Thanks to portrayals in movies, television shows, and news reports, bankruptcy in our society has become overshadowed by a black cloud of negativity. People assume that you can never buy a home or car again, and that your credit is shot for the rest of your life. While bankruptcy is a serious situation, thankfully these myths remain simply untrue.

Financial woes can sneak up on the best of us through a variety of means. Perhaps your business hit a totally unexpected snag and went under? Maybe you or a loved one suffered a devastating accident and you had to pay much of the medical expenses out of pocket? Regardless of your reasons for filing for bankruptcy, you can possibly avoid it again in the future if you remember these important steps.

Budget Your Time As Well As Your Checkbook

An obvious solution to fiscal troubles is to create a set budget for you and your family and do your best to stick to it. Whatever expenses you don’t need should probably be cut out for now. However, it is just as important to spend your time wisely. When people feel restless, bored, or otherwise unsatisfied, they tend to spend money to alleviate it, such as going shopping or seeing a movie. Try to lay out at least one activity or hobby a week for you to do that is both enjoyable and inexpensive.

Every Penny Counts So Start Saving Them

The thought that a single little penny can make a difference is understandably difficult to grasp for most people, but that does not change the validity of its value. Create a savings account with your bank and start siphoning excess portions of your finances into it, no matter how small of a transfer it might be. You will also benefit from delegating a certain percentage of your weekly income directly for this emergency fund.

Credit Lost Can Be Credit Rebuilt

Bankruptcy can certainly put a large hole in your credit score but it is nothing that can’t be patched up over time. Consider your credit options and only open accounts that are smart or safe for your situation. Any purchases that you do put on your credit lines need to be paid off as quickly as possible for your credit to start rebuilding. Remember: your credit limit is not your spending limit – do not purchase anything you know you truly can’t afford.

Consult with a Professional Bankruptcy Attorney

Even though you have already gone through bankruptcy, you might not necessarily be out of the reeds just yet. The smart choice is to speak with a professional and learn your options and figure out if there is anything else you need to do in regards to your bankruptcy. If you live in Illinois, Chicago Bankruptcy Attorney Joseph P. Doyle can be the one to help you make sense of this trying time and help you try to restore your credit. Call (312) 957-8077 today to request a free initial bankruptcy consultation with our team.