How to Bounce Back After a Bankruptcy
You have taken all the steps necessary to have your bankruptcy discharged: Now what? Once you have successfully topped the hurtle of debt you were living with, you have access to a fresh start. At California Bankruptcy Relief, we love seeing success stories of clients who were able to file bankruptcy and get back on track. Today we are sharing a few tips for bouncing back after bankruptcy. If you have not yet started the process, feel free to contact us at (888) 748-0025 for a free bankruptcy consultation.
Keep Up the Discipline
Regardless of the type of bankruptcy you chose, whether it was Chapter 7 or Chapter 13, you have likely been funneling money at debt for many years. While it may not feel that way, this was a form of discipline that you have achieved. Keep at it. Instead of using that money to pay off debt that has now been discharged, put it into a savings account for emergencies. This allows you a backup plan in the future so you are not forced to resort to using credit cards. You can also use that money to set up a retirement account.
Make Sure You Know What Debts Are Still Valid
Bankruptcy does not wipe out 100% of all debt. It is your responsibility to determine what you owe and who you owe it to. For example, student loans do not get wiped out in a bankruptcy. Most taxes do not get wiped out. If there are other debts, make a list. If you are not able to pay down as quickly as the creditors would like you to, communicate with them. It is better to have an uncomfortable conversation once and stay on track than to let yourself get behind again.
Take a Real Look at Your Expenses
First, look at your fixed expenses. These are expenses that do not change on a month to month basis, such as rent, car payment, phone payment, etc. Once you have looked at your fixed numbers, consider the variable ones. How much do you spend on groceries? On gas? How often do you eat out at restaurants? Look for areas you can trim in order to put more money in savings and get back on your feet more quickly.
Look at Your Credit Report
It was once true that credit reports were only important if you wanted to get back into debt by getting approved for more credit. This is no longer true. Today, all sorts of companies and entitles look at your credit, from landlords deciding if they should rent to you to employers deciding if they should hire you. For these reasons, it is wise to keep an eye on your credit report to ensure that everything on it is valid.
These are just some of the tips available to help you bounce back after a bankruptcy. If you are currently in debt and are having trouble figuring out how to move forward, call California Bankruptcy Relief at (888) 748-0025 for a free bankruptcy consultation.