Life after bankruptcy: What to do after a bankrupcy

More than 1 million people file for bankruptcy each year. A misconception is that bankruptcies are due to reckless and irresponsible spending. But that's not true. Statistically, most people file for bankruptcy due to unexpected expenses like medical bills and job loss. This article will talk about how you can put your financial life back together after the bankruptcy is over. Follow TL Brown on our social media accounts TL Brown Law and TL Brown Law  

1. Review your court documents

You should have the court documents which contain all facts about your bankruptcy. This should include all assets and debt. You should receive your copy of discharge, petition credit couseling, motions and orders filed in your case. When you have all of your documents you can file for now credit with lenders.

2. Check your credit reports 
Check your credit reports regularly. You want to make sure your discharged debt from the bankruptcy has been reported to the major credit bureaus, so that you won't be charged for unfair debt.  You also want to make sure a new collection agency is falsely pursuing you. Just make sure nothing new is there. Your credit report should be wiped clean.

3. Keep a budget, Track your expenses

Many believe that bankrupcies are caused by reckless spending. But according to a recent report by the IRS, most bankruptcy are due jobs loss, unexpected expenses, medical bills, student loans. Nevertheless, it's always a wise idea to keep a budget a report of your assets and liabilities.  By tracking your income and expenses it gives you more motivation to keep things on track.

4. Set goals

You can have a little nest saving account in less than a month after filing for bankruptcy. You can even start building your credit again. Set goals. Perhaps you want to start a retirement account or save for your childs college. Whatever, the case may be just set goals for increasing your savings and credit. 

5. Increase your income

Find ways to cover unexpected bills by increasing your sources of income. Most people rely on jobs as their sole source of income. But you can pick up a side hustle like cleaning houses or babysitting to start a saving account or create an emergency fund.


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