After filing for bankruptcy, the sense of relief you get after seeing your debts get discharged can make you feel like anything is possible. To ensure you are ultimately able to benefit from the bankruptcy process, there are three steps you should take afterwards, so your personal finance skills improve.
- Budget. Proper budgeting is the foundation of any successful personal finance plan. After declaring bankruptcy, determine how much money you make on a monthly basis, how much you spend, and what unnecessary spending can be eliminated. Abiding by a budget after filing for bankruptcy may help you avoid another financially inopportune situation.
- Save. While this may sound obvious, one of the best ways to prevent the need to file for bankruptcy again is to save a portion of your income each month. Although how much money you save should depend on your budgetary constraints, you should make sure that saving is one of your main personal finance priorities.
- Rebuild Your Credit. The best way to improve your creditworthiness after declaring bankruptcy is to use credit. However, you should use credit responsibly and only make purchases that you have the funding to pay off in full at that time. To start the process, consider applying for a secured credit card or obtaining a loan with a co-signer.
Learning how to procure and abide by a plan for your personal finances after bankruptcy can be intimidating. If you would like assistance with this process, please reach out to us at Morgan & Partners Inc.