Going through bankruptcy proceedings is an emotionally exhausting, sometimes traumatic event. No matter whether you got into financial trouble through bad decisions or through no fault of your own (medical event, job loss, etc.), you still have had to go through the process of putting all of your assets, income and debt on display and agreeing to either an extended payment plan under Chapter 13 or the loss of some of your assets under Chapter 7.

The good news is that once you’ve gone through the process you have the chance to make a fresh start, and that should begin with building savings.  After what you’ve been through, that may sound more easily said than done – but with a little diligence, consistency and purpose you’ll be able to do it. Here are some pointers to help you get started.

  • Begin by creating a budget. Make a list of all of your expenses – no matter how big or small and add them up. Then write down your net income. How do they compare? If you are bringing in less money than you are spending, you have a problem. You will need to eliminate some of your expenses. Go through your list and see what can be eliminated, or even cut down. If you have to pay for cable and internet, you might be able to cut out some channels. If you have a newspaper subscription you might be able to save by going strictly digital. Your goal is to get your expenses below your income.
  • Open a savings account and deposit your extra income into it every week. The extra income that exceeds your expenses needs to be deposited with the same attention that you give to paying for your other bills. Treat savings as an obligation, not an option.
  • Avoid applying for credit cards. When your finances are tight, it is very tempting to apply for a credit card so that you can buy the things you can’t afford. Don’t do it! This is how you can get into trouble. If something isn’t in your budget and you truly need it then you can use your savings. If you don’t need it, then not having a credit card will prevent you from lapsing into biting off more than you can financially chew.

If you’re considering bankruptcy, our experienced attorneys can help guide you to a solid financial future. Contact us today!

 

 

 

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