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.
received 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.
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.
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.
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.
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.
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.
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.
when 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.
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.
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