Bankruptcy can literally throw a curveball into your life when you really need a fastball up the middle. It may look like a dead end at the end of a long bumpy road but in reality bankruptcy is the yellow brick road to getting your financial life back on track. When you go through with a bankruptcy no matter if you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy there is a process in which to get back on your financial feet.
It is crucial that you begin by creating a budget. Take into consideration the source and amounts of income coming in verse the debt source and amount of debt going out each month. When creating a budget it is crucial to set a realistic goal of saving and spending. The most important piece in any budget is saving as much as you can and decrease the number of disposable expenses that is feasible.
After bankruptcy you learn that cash is actually the best method of spending that you can use. Paying with cash allows you to only purchase those things that you absolutely need. It allows you to save for those items that aren’t necessary; allowing you time to really consider the purchase. It isn’t that credit needs to be feared, as eventually you will need to rebuild your credit in order to purchase a home or car, credit is not necessary to live on a daily basis.
After bankruptcy it is vital that you pay all of your bills on time. Even the smallest of bills, including utilities should always be paid on time. Overdraft fees and bounced checks show up on your credit report and affect your overall credit rating.
Keep a constant eye on your credit report. Equate it to being on a diet. When you are on a diet it is crucial you check in on your weight regularly the same is true of your credit. As you are building your credit it is important to see the increase in your score on a regular basis. The numbers increasing will only help to boost your pride exactly like seeing the scale decrease increases your ability to continue to lose weight.
This may seem like an oxymoron but apply for a credit card to help you establish your credit. There are a few options: a secured credit card which works like a debit card or an unsecured card however get one where you only are approved for a very small credit line. Don’t accept credit line increases until you are one hundred percent sure that your budgeting skills are on track.
This is just the beginning. In our next installment we will continue exploring rebuilding your financial life after bankruptcy.
Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.