How to Rebuild After a Financial Disaster

How to Rebuild After a Financial Disaster

Financial catastrophes can strike at any time, leaving us feeling vulnerable and hopeless. However, there are certain key steps you can take to repair your finances after a disaster. Once you do, then you can start rebuilding your finances with strong financial planning and various tips. In other situations, however, bankruptcy might be your last option. Before anything else, always feel free to ask a Chattanooga bankruptcy attorney for help.


One of the first steps after a financial disaster is to figure out how much damage you suffered. Figure out how much money you lost and how much you will need to repair your finances. This means calculating your upcoming bills, monthly expenses, and any other obligations.

You can do this by adding up your upcoming financial responsibilities and subtracting them from your income. This will tell you how much money you might still need to fully recover. Looking at your financial goals, like buying a house or paying off debt, can help guide you in rebuilding your finances. Without financial goals, it can be hard to know how you want to repair your finances.

Target your immediate financial needs first, the ones you cannot live without. Things like food, shelter, and bills are some examples. Those immediate needs should be your first financial goals to start out with. Then you can build back up towards your bigger financial goals.

Building strong financial goals means making your goals realistic, time-bound, and as specific as possible. Choose goals you know you achieve by a certain timeframe, like within a month or by next year. You can figure out whether your goals are attainable by breaking each goal into manageable steps and asking yourself what steps you start doing now.


Part of rebuilding your finances means setting financial goals while the other part involves budgeting your spending until those goals are met. This involves changing your spending habits, cutting out unnecessary expenses, and saving money for specific goals. To do this, you need to be aware of your spending versus your earnings.

Add up all your monthly expenses then subtract your monthly income from this. See what money you have leftover. If you have little to no money left over, you might need to cut out some of your monthly expenses. When you do have some money left over, figure out whether this will be enough to save for your financial goals.

Other than cutting certain monthly expenses, you can also talk with your creditors about lowering your monthly payments. Some payment plans are flexible and it might be worth reaching out to explore your options until you rebuild your finances.


Bankruptcy can often sneak up when we least expect it. You do not have to deal with bankruptcy alone. Call us today at Tom Bible Law by dialing (423) 690-7712 to find out what your financial options are. Our experienced Tennessee bankruptcy lawyers can help you escape your financial situation by exploring options for bankruptcy. You can find us located in the Tennessee cities of Chattanooga and Tullahoma.