One of the main purposes of declaring bankruptcy is to give debtors a fresh financial start. If you’ve recently filed and received your discharge, you will want to begin minimizing the impact bankruptcy has on your future. However, after struggling with overwhelming debt, it can be difficult to know how to get back on track. Fortunately, there are a few simple things you can do to initiate the recovery process once your bankruptcy case has been finalized. Utilize the following tips to ensure you make the most of your newfound freedom from debt and stay on a successful money management path.

3 Steps You Can Take to Start Over Following a Bankruptcy 

1. Create a Budget 

Make sure you don’t end up making the same financial mistakes by creating a budget. This will allow you to keep track of what money you have coming in and how it’s being spent. Knowing this information and planning for your expenses accordingly will help prevent you from engaging in poor spending habits and ensure you’re taking care of your monthly bills.

2. Obtain New Credit 

Credit plays an essential role in everyday life. After your debts have been discharged, it’s likely you will begin receiving offers to open new lines of credit again. When the time is right, obtain a small amount of credit that you can use and pay off each month. This is one of the fastest ways to rebuild credit following a bankruptcy. The important thing to remember is not to get carried away and only use it if you can fit it in your budget to pay the entire balance the next month. 

3. Monitor Your Credit Report 

If you are trying to get a handle on your finances, monitoring your credit report regularly is a must. If you notice any errors or outdated information, you can take action to have it removed. No one else will be checking the accuracy of your report, and incorrect details can significantly drop your credit score. After filing bankruptcy to improve your financial life, you don’t want to find out too late that other factors are negatively affecting your score.

Bankruptcy provides the chance to regain your financial footing. Make sure you take proper advantage of this opportunity by consulting an experienced bankruptcy attorney before filing. Frances H. Hollinger has assisted numerous South Baldwin, AL, residents in achieving the debt relief they seek. She can be entrusted to help you determine if bankruptcy is the best option for your particular situation. Call her practice at (251) 943-9030 to discuss your economic goals, or visit her online to learn more about the services she offers.