Filing for bankruptcy and dealing with the aftermath can be daunting. You do not have to settle for less after bankruptcy. There are multiple ways to rebuild financial stability post-bankruptcy. Exploring these financial strategies may help you recover from bankruptcy faster and with greater efficiency. If you have questions about bankruptcy, then a Tullahoma bankruptcy lawyer might be able to help.
First Steps After Bankruptcy
The first steps after bankruptcy involve figuring out ways to manage debt more efficiently. Consider consulting with a bankruptcy lawyer to examine all options for managing debt after bankruptcy. In some cases, you can keep certain assets like your home, car, and certain belongings.
To retain some of these financial assets, you may have to agree to a new payment plan. However, this new payment plan may have more affordable monthly payments. Find out what the rules of this are because not following through on some payment plans post-bankruptcy could lead to various dilemmas like repossession.
Rebuilding credit and staying out of debt will be the next steps. Credit can be rebuilt in multiple ways like paying bills early, secured credit cards, credit-builder loans, and becoming an authorized user on a loved one’s credit card. Staying out of debt means limiting spending with a budget plan.
How to Rebuild Finances Post-Bankruptcy
Having a budget plan is one of several ways to manage debt that can help you take control of rebuilding your finances. What this means is listing your monthly expenses and subtracting their total from your usual monthly income. Then you can start deciding which expenses to cut until you save up more money and pay off debt.
Saving money while paying off remaining debt may sound counterintuitive but not with a budget plan. Having a budget means you can assign every dollar you make to a goal. One goal could be paying off this debt over here while the other goal is putting a certain amount of money into an emergency fund each month.
Other financial tips for recovery include switching from a spending mindset to a savings mindset. The important thing to keep in mind here is that saving can be a temporary measure until you have enough money to spend. Saving more now could mean having more money to spend later.
Framing spending as a decision can also be helpful. The decision to buy a more expensive product is also deciding not to use that money for something else. Do not hesitate to dive into creative ways to save money, all while having a savings goal in mind. Know how much money you want saved up by a certain deadline to use as motivation and a guide for deciding whether to buy an expensive product or an off-brand cheaper alternative.
Call Tom Bible Law for Legal Help
You may not have to face the financial aftermath of bankruptcy alone. Start by contacting us at Tom Bible Law by dialing (423) 424-3116 for a consultation today about your finances. Our dedicated team of Tennessee bankruptcy attorneys can guide you with various financial options related to bankruptcy. We are located in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.