Bankruptcy gives you a fresh start in your financial life. But once you’ve received your discharge
from your bankruptcy, you may not know exactly what steps to do moving forward.
from your bankruptcy, you may not know exactly what steps to do moving forward.
1. Collect and file all your bankruptcy paperwork
Be sure to keep a copy of your bankruptcy petition, the 40-50 page document that details your
financial information. Also keep your notice of bankruptcy filing as well as a copy of your
discharge order that you received from the court.
financial information. Also keep your notice of bankruptcy filing as well as a copy of your
discharge order that you received from the court.
Why should you do this? Sometimes when lenders are considering you for new credit, they want to
see your bankruptcy papers. It is also important to keep these documents in case anyone wants to
collect on your old debt in the future.
see your bankruptcy papers. It is also important to keep these documents in case anyone wants to
collect on your old debt in the future.
2. Start a budget and review it frequently
Many bankruptcies begin as a result of unforeseen medical expenses, job losses, or sudden family
changes such as divorces or birth of children. Creating a budget allows you to prepare and set goals
for the future. There are many great budgeting tools you can access through apps on your phone.
changes such as divorces or birth of children. Creating a budget allows you to prepare and set goals
for the future. There are many great budgeting tools you can access through apps on your phone.
3. Start an emergency fund
As part of starting a budget, you will want to designate some funds for unforeseeable emergency
financial events. This fund could even turn into retirement savings or college tuition savings in
the future.
financial events. This fund could even turn into retirement savings or college tuition savings in
the future.
Why should you do this? This fund will prevent you from creating new debt when emergencies
arise. This fund will also make you feel less anxious about your finances and prevent panic when
emergencies happen.
arise. This fund will also make you feel less anxious about your finances and prevent panic when
emergencies happen.
4. Think about ways to improve your credit
Fresh out of your bankruptcy, you will have little to no debt. This is a great opportunity to build
your credit. However, be careful not to let yourself get carried away. Begin with a small credit
limit, monitor your charges, and pay more than just the minimum amount every month. Another
opportunity for building credit is by investing in a secured-CD.
your credit. However, be careful not to let yourself get carried away. Begin with a small credit
limit, monitor your charges, and pay more than just the minimum amount every month. Another
opportunity for building credit is by investing in a secured-CD.
5. Explore financial management resources in the area
Because bankruptcy allows a fresh start on your financial life, it never hurts to learn more tips
and tricks to navigating personal finance in the future. You can check out free seminars offered
by local non-profits or community colleges.
and tricks to navigating personal finance in the future. You can check out free seminars offered
by local non-profits or community colleges.
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