Life After Bankruptcy
After filing bankruptcy, you probably feel relieved. Instead of allowing your debt to keep building, you took care of the situation and paved the way for a new financial future. Although you may have this “fresh start,” you shouldn’t take it lightly. Follow these tips to ensure you won’t fall back into debt.
Positive Thinking
This one seems pretty simple — but you’d be surprised how hard it is to follow for many fillers. Don’t beat yourself up for your past mistakes. Instead, look at filing bankruptcy as a learning experience. Staying positive about paying off your debts and not acquiring any new debts is critical.
Trim Down Your Lifestyle
Whether you filed a Chapter 13 or Chapter 7, live modestly after filing for bankruptcy! Avoid bad habits — like buying a $5 latte every morning. Budget management softwares like Mint.com will help you create a realistic budget and make it easier for you to keep track of bills. They even notify you about upcoming bill due dates so you’ll avoid late fees and build your credit. Oh and another great feature — Mint provide your credit score for free.
Start Saving
Many people file bankruptcy because they are unable to pay for medical and other emergency bills. Be prepared for emergencies by putting back money into your savings account whenever possible. It might be hard to start this habit, but in the future you’ll be glad you did. Most banks allow you to set up automatic transfers from your checking to your savings so you don’t even have to think about it.
Rebuilding Your Credit
Your credit score isn’t doomed forever. In fact, there are plenty of ways you can speed up the painful process of raising your credit score. A good place to start is asking your bank about obtaining a secured credit card. This will help you develop good habits and get you on the right track to reestablishing your credit. Learn more about how secured credit cards work here.
Legal technology is changing and NextChapter® is helping attorneys in the bankruptcy field stay ahead of the curve. NextChapter is a web application for attorneys to prepare, manage, and file their bankruptcy cases online. For more information about NextChapter, visit the website or follow on Twitter.
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