What to Do after Bankruptcy

Filing for bankruptcy is often the best solution to the problem of unmanageable debt, but what happens afterward? It is important to be able to heal your financial situation in order to avoid filing for bankruptcy again. There are a few things you can do to help yourself regain a healthy financial status; all you need to do is research carefully and decide carefully where to start!

Spend Wisely

Although it would be nice if you could simply work and not have to buy anything or pay any bills, that idea is both unreasonable and impossible. You must buy groceries for yourself or your family, pay rent or mortgage, and any of a number of other required expenses. You can, however, budget these things in such a way that makes it easier for you to regain financial health. Take care of your mandatory expenses, such as utility bills, and fit everything else into your budget. Set a specific amount of money you are allowed to spend per month on each thing, and follow that plan precisely. You may think that it will be okay to use your credit card “just once or twice” to spend more on something you want, but it is inadvisable to do this without planning and a way to pay it back.

Heal Your Credit

Bankruptcy will alter your credit score; however, it will alter it less than simply continuing to let your debt pile up would alter it. Once you are free from your unmanageable debt, it is important to build your credit so that you will be seen as a responsible and trustworthy person once more. Some good ideas to begin this process are to get a secured credit card from a bank or to get a card with a department store. If you are careful, you can use this as a stepping stone to better credit.

Get Help

Even the smartest people cannot do everything without help. It is a good idea to find someone to go over your budget and the details of your bankruptcy with you and give you sound advice. You should be wary of who you hire; while there are many people who truly want to help, there are a few companies and systems that will promise you things they can’t deliver and take advantage of you. A good idea is to research your options and make the decision based on your research. If you do these things and follow the advice that your attorney gives you, it will be a much smoother transition.

"I was worried I would lose everything. Brian helped me sort things out and restored my life. I don't know where I'd be without him!"

-Sue H. Ogden, UT