couple filing for bankruptcy

Keep These Tips in Mind After a Successful Bankruptcy

By Derek Prosser

Filing for bankruptcy is never an easy decision. So when you make the choice to do so, and you have been granted it, it can feel like a huge weight off of your shoulders. However, it’s important that you don’t get too comfortable once emerging from bankruptcy. While you may have a fresh financial start, you must remember that there were certain things that led you to such a decision to begin with. That’s why it’s so important to know how to move forward. Here are some helpful tips for moving forward after a successful bankruptcy. 

1. Stick with a Thought-out Budge

Your spending habits were likely what contributed to your financial downfall the first time around. That’s why it’s best to create a responsible budget and make sure you stick with it. It’s easy to spend money without even knowing where it’s going. It may be best to track everything you spend for at least 6 months to one year. 

2. Avoid Using Your Credit Cards When Possible

It’s easy to swipe a credit card to pay for something, which is exactly why you should try to avoid it at all costs. Firstly, it may be difficult to obtain a credit card given your current financial situation, and secondly, it’s easy to get carried away if you do. Try paying for everything that you can in cash. You’ll also be able to maintain a better grip on exactly what you’re spending.

3. Build Your Credit Up with a Secured Credit Card

While you may not be able to qualify for a credit card after successfully filing for bankruptcy, it is still important that you start to rebuild your credit. That’s why a secured credit card may be the best option for you. Although secured credit cards can help to build up your credit, they only work on money that you deposit to the account. Therefore, you can’t spend more money than you have. 

4. Build Up an Emergency Fund

If the pandemic has taught us anything financially, it’s the importance of having an emergency fund. Life is unexpected and you never know when you are going to need money. Flat tire? Unplanned funeral? Visit to the ER? They’re going to cost you. That’s why it’s essential that you build up an emergency fund of at least six months worth of expenses. While this can prove difficult when you have so many expenses, even saving a little bit each month can make a big difference. 

5. Keep an Eye on Your Credit Score

Now that your credit has been impacted by your bankruptcy, it’s important to keep an eye on it. You should regularly check your credit report in order to look for any errors or mistakes that may have been made. Since your credit score can impact so many aspects of your life, this is key. Just make sure that you are checking your score through a manner in which it’s free and won’t negatively impact it. 

6. Never Give Out Your Personal Information without Confirming Someone’s Identity

Coming back from bankruptcy can be hard enough without getting scammed. That’s why it’s so important that you keep a close eye on anyone looking for your information. If you are contacted by phone, text, or email, and someone is requesting your personal information, be sure not to give it out without confirming his or her identity. Also, be sure not to get a load from a payday lender, as they can charge extraordinarily high-interest rates. Instead, do your homework and compare rates. 

Toronjo & Prosser Law Helps Those Who Are Dealing with Bankruptcy

It’s undoubtedly stressful to realize that you don’t have enough money, and even more stressful when you realize that filing for bankruptcy may be your best option. That’s why it’s so important to consult with a knowledgeable and experienced Dallas bankruptcy attorney. At Toronjo & Prosser, our qualified Texas Bankruptcy Attorneys can help you to navigate the process. To learn more or to schedule a free consultation contact us online or call us today!

About the Author
Derek Prosser understands that clients need help and need answers and that in order to properly address those concerns, clients need to deal with an attorney first and always, not just an assistant or paralegal.  By effectively counseling from the outset of a case, Toronjo & Prosser Law can anticipate and address potential problems before they arise, as opposed to when they’ve already surfaced (the “Counsel Later” approach), and, in the end, strive for a seamless representation.