As I’m sure you can imagine, we receive a lot of questions about reestablishing credit, and how to point your finances in the right direction after filing for bankruptcy relief.

Part of our commitment to our clients is to walk with you through not just the filing of your bankruptcy, but in reestablishing your financial life afterwards as well.

Here are a few steps that you can take to reestablish your creditworthiness after bankruptcy:

1. Begin to save up a $1,000 emergency fund. It’s not a matter of if an emergency will occur, but when. Without an emergency fund, you run the risk of having unexpected life events end up on a credit card.
2. Track your spending for 90 days. This takes just a few minutes each day, and will give you valuable information that you can use to establish a household budget. If you don’t know where your money is going, you will end up wondering where it went! Start with these categories and build on from there: Housing, Food, Vehicle Expenses, Housekeeping Supplies, Clothing, Pets, and Personal Care Products. There are smartphone apps that make this super easy to do. We recommend Dave Ramsey’s EveryDollar app.
3. Give yourself some grace. Life happens to all of us, so go slow – take a moment to appreciate the steps you have already taken to relieve the financial stress from your life and look to the future, that’s the only direction you’re heading. Why not take a class, or two? Dave Ramsey’s Financial Peace University is fantastic for learning to live debt-free. It is taught in various churches, and the class is free; you just have to buy the books! The information you will gain from this class far out-weighs the minimal cost to get started.

If you would like some additional tips on reestablishing credit, or if have any questions for us, please don’t hesitate to call, text or email.