No one wants to go through bankruptcy. However, it is often the only way to get debt relief for many.
Now that you’ve made the decision to file for bankruptcy, it is time to think about your post-bankruptcy future. Taking the right steps now can help you maintain good financial standing, and perhaps prevent another bankruptcy.
Review your credit report
Start by obtaining a copy of your credit report from all three major credit bureaus. This step can help you understand your current financial standing and identify any errors that need correction. Regularly monitoring your credit report thereafter allows you to track your progress over time.
Create a budget
Developing a realistic budget is essential to manage your finances effectively. List all your income sources and expenses to see where your money is going. A sound budget will help you avoid unnecessary spending and help to ensure you live within your means.
Start an emergency fund
An emergency nest egg can provide a financial cushion for unexpected expenses. Aim to save at least three to six months in living expenses if possible. Your emergency fund will help you avoid relying on credit cards or loans in case of an emergency.
Rebuild your credit
For best results, make this a gradual process. Consider applying for a secured credit card, which requires a deposit that serves as your credit limit. Use it responsibly and pay off the balance in full each month to demonstrate good credit behavior while staying current on other obligations and bills.
Contrary to common belief, life after bankruptcy can be financially secure. Learn more about consumer bankruptcy in Washington by getting sound legal guidance.