During these hard financial times, many of us are faced with the tough decision of having to file for bankruptcy. If you find yourself in the situation where you have filed for bankruptcy and it has now be dismissed, you are on the road to bankruptcy recovery. There are some tips you can us to help you stay on the right path, and ensure you do not let your self hit the financial bottom again.
Now that your on the road to bankruptcy recovery, free yourself from the guilt that you have been burdening on yourself through, because facing the problem and taking care of it were the first step. First off you want to have a plan, a budget. You need to have self discipline during this time, and not let yourself get into over spending or spending money that you really don’t have. If it was an unexpected incident that caused your financial downfall, have a back up plan. Make a savings account, put money away for a rainy day in case you lose your job for example. Make sure that you will be financially ok to pay bills even if you are unemployed.
Keep your payments consistent. The creditors will be watching you to make sure you are paying ALL bills on time every month. They also want to see stability in your life. They want to see that you have been at current jobs or places of residents for at least a few years while you are on the road to recovery. Opening checking and savings accounts is also a good idea. Keep the minimum amount in there at all times, creditors will be watching to see how you are spending your money. If you are able to get a credit card, using it wisely can actually help you. It will only help you though, if you use it and pay the minimum amount on time, or more then the minimum amount. Again this shows creditors that you are being consistent and on time with your payments.
You always want to consider other expenses, that only come up from time to time. Like your car breaking down, insurance payments, unexpected money being paid out. Saving money, ties into this. If you have emergency money put away, you can avoid getting yourself in another financial hole. If you think you may want to purchase a house in the future, even though it will take you a few years to be able to qualify, don’t let that stop you from preparing for the future. Putting money away will only help you and not hurt you.
Also, you want to ask yourself what would happen if you suddenly lost your job, or if you became ill. You have to consider everything into your expenses. Have separate savings for unexpected events, for your future. Do whatever you can to insure that you will never go down the road of bankruptcy again.
Most people who are recovering from bankruptcy, come to a full recovery in 3-5 years. In order to do that, you must have a ton of self-discipline and stay positive. It probably took you a lot longer to get in financial trouble than it will be to get out of it. You are on the right path, stay on it and you will be financially free from here on out.