Four Steps to Take After Filing for Bankruptcy

Struggling with debt often feels like a hopeless situation. No matter how much you try to juggle payments, you can never seem to get ahead or get caught up on past due balances. Bankruptcy can provide a solution to this problem. It offers relief from the fear and anxiety you have likely been experiencing for months or even years and gives you the fresh start you need to rebuild your life and your financial security. To make the most of this opportunity, the following are four steps you should take once your bankruptcy is complete:

1. Make a personal budget

Now that you are free of debts you cannot pay, you will have additional funds to meet your daily living expenses. Now is the time to create a personal budget, allowing for items such as food, clothing, and other expenses. The Balance offers a step-by-step guide on how to make a budget that is simple and easy to follow.

2. Check your credit score

Being unable to pay bills is bad enough, but knowing what it is doing to your credit score makes it worse. Now that you have filed for bankruptcy, those days are behind you. It is a common myth that filing for bankruptcy ruins your credit. The fact is that eliminating all those excess debts and past due balances will likely help you in the long run. Check your credit score now and in the months ahead. You will be able to watch as it increases, along with your financial security.

3. Re-establish credit

It is another common myth that you will not be able to get credit after going through a bankruptcy. Consider applying for a credit card with a local department store, taking a small personal loan, or getting a secured credit card through your bank. The point is not to get back into debt, but to reestablish your credit by making purchases and being on time with your payments.

4. Put something in savings

When you are drowning in debt, it is impossible to think of saving money. Now that those days are over, you can begin planning for a brighter financial future. Considering putting a portion of your income aside for long-term use, such as in retirement, while having another fund for holidays or for planning a vacation.

Reach Out to Our Michigan Bankruptcy Attorney

If you are struggling with debts you are unable to pay, take the first step towards financial freedom and contact Karen E. Evangelista, P.C. today. Request a free consultation to discuss your situation and how we can help you get out of debt.