Meeting with a personal bankruptcy lawyer can be a frightening experience, but it is an imperative step to gain back control of your finances. In most cases, filing bankruptcy will be necessary after losing your income due to the economy or an expensive medical condition, but it does not have to be the end of the world. If you have recently filed bankruptcy, changing your lifestyle is key to improving your financial future. Here are a few essential lifestyle changes to make after filing bankruptcy.
Quit Keeping up With the Jones’
You may watch your neighbors haul in new furniture and televisions, drive up in new vehicles, and undergo various improvement projects on their homes. You may try and keep up or outdo these neighbors without really having the ability to afford these expenses. This can leave you in financial distress that could require filing bankruptcy.
After filing, stop trying to keep up with your neighbors, friends, and family. Take control of your finances by not making purchases that you cannot afford. In addition, you should pay towards your debts with any extra money that you earn.
Budget Accordingly
After filing, your personal bankruptcy lawyer will design a budget that will allow for your ordinary living expenses and payments towards your debts. Unfortunately, this budget will not allow for unnecessary luxury purchases, so you must learn to live within your means after filing.
To help reduce your living expenses, consider using coupons when purchasing groceries. Also, make a menu and a list for each grocery shopping trip. This will reduce the desire to buy things that you really do not need. You can also save by adjusting your thermostat to lower energy bills, or even getting rid of non-vital utilities like cable. It is also important to learn how to spend with cash only. Bankruptcy will affect your credit for 7 to 10 years, so you will not be able to utilize credit cards or personal loans for purchases.
Rebuild Slowly
Fortunately, you can rebuild your credit after filing bankruptcy, but this is a slow process.
To get started, consider applying for a secured credit card at your bank. Make a small deposit on the card, which will serve as your credit limit. Each month, make one purchase on the card that is within your credit limit. Pay the balance off at the end of the month. Use your secured credit card only one time each month and make sure to pay the balance off each month. This will require discipline and organization, but it is an important lifestyle change to make after bankruptcy.
Filing bankruptcy is not the end of the world, but you will need to learn how to live in a more economical manner. To learn more, contact a personal bankruptcy lawyer in Frisco, TX from Collins & Arnove at 972-516-4255.
Collins & Arnove | Personal Bankruptcy Lawyer Frisco TX | 972-516-4255