Life after filing for bankruptcy does not have to come to a grinding halt. Bankruptcy is an excellent option for those who have fallen on hard times financially. It is not the end of the road for you financially. In fact, bankruptcy must be looked at as a rebirth for your finances. Once you exit bankruptcy, you can begin to build your credit and financial portfolio again.
The first thing you need to write down is a list of expenses. You shouldn’t have many expenses left on the record following a bankruptcy, but there will still be some leftover. Look at what you spend each day on coffee, cigarettes, lunch and other items that you might be able to cut back on to save some money.
Once you list all of your expenses, you can then list your income. List every area of income you have, including jobs, alimony, child support, interest from various accounts and even public assistance. All of this is income that can be used to create a budget.
Break down your income based on the pay periods across all of your jobs. You need to break it down this way to create an effective budget. Figure out which payments come in weekly, bi-weekly, monthly, quarterly and annually.
Compare your expense list to your income list. Look at both of the totals. If the expense total exceeds the income total, then you will find yourself in debt once again. You will need to cut more expenses from your list so you can begin to put money into a savings account.
You need to learn to live within your means and this can be done by analyzing your income and expenses each month to track your progress.
Did you recently file for bankruptcy in New York? Are you getting ready to file for Chapter 13 bankruptcy? If you answered yes to either of these questions, you need to know how to create a post-bankruptcy budget so you don’t find yourself in dire financial problems again.
Source: Money Crashers, “How To Rebuild Your Financial House After Bankruptcy,” accessed Jan. 26, 2018