Most people look forward to the day their bankruptcy is discharged. You may not realize that things aren’t going to be too different when you’re out of bankruptcy.
One of the most important things to remember as your bankruptcy nears the end is that you have new financial tools at your disposal. As part of the bankruptcy process, you have to go through a financial management course and credit counseling. You can use that information to help as you rebuild your finances.
Slowly rebuild your credit profile
Your credit profile will take to rebuild, but you can make it even stronger now. You weren’t allowed to obtain new credit while your bankruptcy case was open, but you can start working on it once the bankruptcy is finished. Rebuilding your credit profile will likely start with having a secured credit card. You can get this as soon as the bankruptcy is discharged, but remember to use it wisely.
A good credit score and profile can help you with things like getting a vehicle loan and finding a place to live. Even if you don’t plan on purchasing a home, many landlords do credit checks now to determine if a renter is a good risk. Some employers also rely on credit scores to help them vet potential employees.
Set your budget and stick to it
Your budget is the key to trying to avoid having to file for bankruptcy protection in the future. Make sure that it includes some money for savings so you know that you can pay unexpected bills as they arise.
For most people, a budget is a fluid concept because it needs to change depending on what’s going on at the time. Remember, it’s always best to have extra money left at the end of the month instead of always going over budget. Even little expenses can add up quickly.
Filing bankruptcy is a major step in getting your finances back where they should be. Make sure you have someone on your side who can help you to do what’s in your best interests.