You’ve Filed for bankruptcy in Georgia and your case is over. What do you do now? How do you reset, start fresh and regain credit after bankruptcy? These five tips will get you started on life after bankruptcy.

starting over after bankruptcy

  1. Create a Budget

    Top financial advisors and experts always recommend creating a budget and telling every dollar where to go. After filing for bankruptcy, a budget is a necessity. If you’ve filed Chapter 13, you’ll have a trustee that divides a portion of your money for debt payback and you’ll budget the rest of the money. With Chapter 7, you won’t have those debts but you won’t have credit, either. Living on a cash budget means you’ll really need to track where everything goes so you can pay all of your bills on time.

  2. Use Multiple Bank Accounts

    Allocating money to several accounts helps you budget. If all of your income goes into one account, it is easier to lose track of where money should go. Open sub-accounts or online accounts for different categories of your budget, like your mortgage, groceries, student loan and savings. Set-up automatic transfers to send the amount needed for each account every payday.

  3. Start an Emergency Fund

    An emergency fund gives you a cushion for unexpected expenses, preventing you from going into debt when things like car repairs, loss of income or medical emergencies arise. Typically, an emergency fund should cover your expenses for three to six months in the case of loss of employment.

  4. Rebuild Good Credit

    Get a secured credit card. These cards help you rebuild good credit after filing for bankruptcy but have a spending limit based on how much money you put in to secure the card. For example, if you put $400 toward a secured credit card, you will have a $400 limit. You can use it to buy groceries and pay it off every month. When choosing a secured card, look for one that doesn’t charge fees and that reports to a credit bureau. Avoid other credit cards until you have established a very good budgeting system.

  5. Maintain Steady Income

    In order to pay your bills and create savings, you need income. This might mean taking on side jobs, working overtime and doing a job below your education and experience level. Steady income and employment go a long way in maintaining your finances and credit.

If you have any questions or need help before or after bankruptcy, contact bankruptcy experts at Clark & Washington in the Atlanta area.

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