How to Rebuild Your Finances After Bankruptcy

Yes, there is life after bankruptcy. In fact, that post-bankruptcy era could turn out to be extremely prosperous because you’ve learned what not to do when it comes to debt. While it is true that the bankruptcy will be popping up on your credit report for the next seven years that doesn’t mean you’re frozen out from getting credit or a loan or making major purchases such as a car or home. You’re just going to be a lot smarter about that! Here are some other tips for helping you rebuild your finances after bankruptcy.

  • Feeling Embarrassed? Get Over It

So, you’ve had to file for bankruptcy. Welcome to the club. In 2010, the amount of personal bankruptcies rose by 9% to just over 1.5 million filings. And that doesn’t even include the many millions of Americans who have consulted with a bankruptcy attorney to consider all their options. The bottom line is that you need to let go of the shame and focus on rebuilding. You got into trouble and not you’re out of trouble. Keep moving on.

  • Embrace Budgeting

If there is one thing to take away from your bankruptcy it is to pay your bills on time. That goes hand in hand with spending only what you can afford. All of this means you should put yourself on a budget. Between the many Smartphone apps and computer programs it’s very easy to set up a weekly tabulation of what is coming in and what is going out. You can also set up automatic bill payments and reminders so you’ll never forget. Reviewing these numbers will have you stick to that budget and start to build up your savings. Try and live “below your means” and not above them. A budget should also let you put aside that financial cushion for future emergencies. The goal should be to have at least three months of household expenses stashed away in your savings.

  • Find A Credit Card That Helps You Rebuild

One of the benefits of a bankruptcy ruling in your favor is releasing your from debt. That doesn’t mean you get to go out and charge up more debt. In fact, you probably won’t find a credit card company who is going to provide you with an unsecured line of credit. However, that doesn’t mean you can’t get a credit card. There are many companies that offer secured credit. This means you put up a deposit of $500 (or some other amount) and they’ll issue you a card with that limit. Pay your bills on time and don’t go over and you’ll be making good marks on your credit history.

An experienced Westchester bankruptcy attorney can walk you through all of those steps that will get you back onto solid financial footing. This is a proactive approach to getting your debt under control and being able to look towards a brighter future. A bankruptcy is a lot better than hiding from the mailman or avoiding phone calls or getting kicked out of your home.