What happens after you file for bankruptcy and are discharged? After filing bankruptcy there is a sense of relief, but now what? Your debt is erased, you are no longer drowning in a hole, and no longer worrying about making payments with money you honestly do not have.
Now it is time to budget and save money. Budgeting allows seeing exactly where your money is going. Budgeting allows for insight on how one can spend money more efficiently. Understanding where spending cuts can be made essentially allows for more money to be saved.
Saving money is crucial after filing bankruptcy and having debt discharged. Debt becomes a problem when items are purchased on credit with money that is not available to pay the credit back. By saving money, it can be used when needed and items can be purchased without using a credit card.
Next, building credit back up is essential. Any time an item is purchased needs to be paid on time and possibly even early. For example, taking out a small loan from your bank (co-signer possibly needed) and making monthly payments to earn trust and build credit can be a way to essentially build credit back up.
Lastly, after filing bankruptcy and having debt discharged, bankruptcy needs to be avoided and prevented from re-occurring. Financial control is a key factor in building credit, saving money, and spending cuts. Here at Wright Law Offices, we are a debt relief agency. We help individuals and businesses file for bankruptcy relief under the Bankruptcy Code. Call our Phoenix bankruptcy lawyer at 602-456-6085 for a free initial consultation.
Source: Legal Zoom, “Life After Bankruptcy: Get back on your feet after filing Chapter 7,” Tynisha Lewis, October 2009