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Financial management after bankruptcy

Bankruptcy can provide parties with the chance to change their financial trajectory. However, it is up to those parties to make the process work for them.

Along with the tools the debt education course provides, parties may take advantage of additional financial options to get and stay on the right path. Here are a few key financial measures that parties may take after a bankruptcy.

Budget

During the debt education course, filers learn about proper budgeting. Not only should parties plan a budget for moving forward immediately after bankruptcy, but it may also be beneficial and necessary to modifty the budget with any lifestyle changes, such as

  • Marriage or divorce
  • Child birth or adoption
  • Change in jobs

While some changes may decrease a person's finances, others may help to increase them. Either way, knowing where funds are going and making sure that one's resources outnumber expenses is essential.

Security net

While many people do not have a savings account, creating an emergency fund is very important for those who have undergone bankruptcy. Unexpected expenses are one of the leading causes of bankruptcy; therefore, creating an emergency fund can be very beneficial in efforts to avoid bankruptcy in the future. For those who can afford it, it is wise to establish a savings acount and an emergency fund. While savings may go towards specific purchases, an emergency fund is only available when absolutely necessary.

Credit

Some parties may be apprehensive about opening new lines of credit after undergoing bankruptcy. However, doing so can be a good way to rebuild credit, as long as parties exercise safe credit options. Obtaining a secured credit card and paying it off before the end of each month is advisable.

While these are a few of the most common financial management measures people may consider, there are additional options that may work best in certain situations. Parties should consider their situation to determine what works for them, implement those measures and stick to them to see lasting results.

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O'Brien Law Firm, LLC
1890 Goodman Road East
Southaven, MS 38671

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