Money Management While You’re Filing For Bankruptcy

June 30, 2012 by  Filed under: Bankruptcy 

Filing for bankruptcy has many positive connotations. The process is all about reform, change for the better, getting a fresh start, and seeking a safe haven. So, as you go through this process, you should be aware of what healthy money management practices you can incorporate into your new life.

When you get a fresh start financially, the clean slate will stay clean because you’ve already worked hard to form new habits. Not only will these new habits help you stay out of bankruptcy and other difficult financial situations in the future, but you’ll also feel better about yourself. Good money management practices boost self-esteem and self-confidence! Ready to get started?

Before Filing for Bankruptcy

At least 90 days before you begin filling for bankruptcy make sure you don’t use any credit. Any credit debt incurred 90 days prior to filing for bankruptcy will not be discharged. Of course, you don’t really want any credit debt at all, but you don’t need to worry about that now. After you file and have a clean slate again you can focus on that money management practice.

Don’t take any loans you can’t repay. You’re probably well aware of this piece of advice. But, it’s important to point out anyway. Some people are under the impression that they can take out a loan before filing for bankruptcy in order to get cash. This is considered to be fraud by the bankruptcy courts, and it won’t be discharged!

After Filing for Bankruptcy

After you’re done filing for bankruptcy, you have a little bit of time to come up with some money management goals and habits before you get your debts eliminated. Use this time wisely to figure out how you want your new financial life to look.

If you haven’t had a budget before, now is a great time to implement this money management practice. Determine how much money you should spend in each category, thinking carefully before taking on any debt!

Also, consider how you might want to save and invest any money that doesn’t go straight into your budget. Setting aside funds for the future is probably something you couldn’t consider before filing for bankruptcy. Now it’s time to take advantage of your new situation, and plan for your monetary future! This should be an exciting time for you!

Lastly, be sure you keep your spending habits in check. No credit cards for a while! Making a list of the items you need before you go shopping will help a lot!

John understands that financial hardships can affect honest, hard-working people. His area of expertise is bankruptcy law and aims to provide all his clients with the fresh start they are looking for. His business philosophy is guided by one thing, helping people get back on track. As a Denver bankruptcy attorney his practice has given him the opportunity to directly impact the lives of many people.

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