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Even though nearly a half million people file Chapter 7 bankruptcy each year, there is still a lot of misinformation about the impacts of bankruptcy on one’s life. Depending on your unique circumstances and needs, filing for bankruptcy may be a great choice, to help you move forward. People of all walks of life use personal bankruptcy to erase old debts and wipe the slate clean, so they can build a better future. There is a lot of information out there on whether you qualify for bankruptcy and how to move through the proceedings, but what happens after your bankruptcy has been finalized? Many people are left wondering what life will be like after their debts are discharged, and how to move forward.
Regardless of the reasons why you decided to file for Chapter 7 bankruptcy in Melbourne, there are things that you can do to take charge of your life again. With the right intention and preparation, you can avoid future financial problems, and rebuild your credit.
Here are some tips for a smart, healthy post-bankruptcy life:
Most people don’t like to think about budgets or tracking their spending, but chances are good that that attitude got you where you were before bankruptcy! Thankfully, these days there are many options to help you manage your money, automate bill paying, and stick to a budget, including smartphone apps and free online software.
The general rule of thumb for an emergency savings account, is to have at least 3x your monthly expenses stashed away. If you don’t already have that, start setting aside some of each paycheck, to go directly into savings. This will help you feel secure and prepared for the unexpected, as well as help you avoid racking up credit card balances.
Checking your credit reports is always a smart idea, but especially after bankruptcy. Make sure you scan for errors, and make sure that your debts were discharged correctly. Also, take this opportunity to dispute any mistakes or misinformation, so you can truly get a clean start.
For those who feel financially stable and able to manage their money, a new credit card or small personal loan may help rebuild their credit rating. Keep in mind that you may have slightly higher interest rates, may need a cosigner, or may need to look at secured credit cards, in order to rejoin the market.
Want more tips on Chapter 7 bankruptcy? Reach out to us at Harnage Law today and ask for your free consultation!
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