If you are planning to file for bankruptcy, you have reasons to look forward to the changes you will experience in your life. You will no longer have to live day-to-day with worry and stress as you watch your debt grow while being unable to make the minimum payments on your loans. You will be better equipped to live within your means and you will be able to afford more of the things you want for your family without the hindrance of wage garnishment. You won’t have to put up with creditor harassment and freezes on your bank account. You will be able to enjoy the purpose of bankruptcy, as expressed by the U.S. Supreme Court in a 1934 decision: “…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”
TIPS TO REBUILD AFTER BANKRUPTCY
Life following bankruptcy will be full of choices. For those people who refuse to adapt new habits, they will likely find that they are right where they were before filing for bankruptcy-struggling with debt. However, for those people who make conservative financial decisions and overhaul their current choices, they may be able to avoid struggling with their money again and may set themselves up for long-term success. At Rowdy Williams Law Firm, our Terre Haute bankruptcy lawyer knows that it can be difficult to know where to start after filing for bankruptcy and we are therefore fully dedicated to providing our clients with the reliable legal assistance that they deserve.
Below, we have outlined some tips that can be useful to helping establish yourself once more.
- Slim down your expenses considerably. By cutting out extra expenses and living a “no-frills” life, you can save yourself a lot of heartache. Cut out anything but the essentials and put together a solid budget. This may be small decisions, like where to go for dinner, or they could be life-changing, such as moving to a place with a smaller mortgage or rent.
- Slowly work on rebuilding your credit. It can be tempting to accept every offer of credit that is thrown your way after filing for bankruptcy, but the truth is that you need to be smart about your finances. Make smart choices and be smart. Working with credit can get you burned if you aren’t smart about it-which is why you need to be careful. Don’t overextend yourself and work with reputable companies.
- Start saving! The best thing that you can do to avoid possibly overextending yourself in the future is to get a cushion behind you. By having steady employment, cutting down on expenses and putting your money into a savings account, you can slowly provide yourself with protection against possible future financial struggles.
- Stay positive. Many people who have filed for bankruptcy will experience considerable guilt and shame. Don’t let yourself fall into this trap. Over a million people file for bankruptcy every year; it is not something to be ashamed of. No matter whether the debt was due to a few bad decisions or unforeseeable changes in your life, you’ve done what you need to do to take care of it. Now, all you need to do is work toward a brighter tomorrow!