Tips to maintain financial health after bankruptcy

Now that you have had your debts discharged by filing for bankruptcy in Tennessee, you probably feel as though you have had the weight of the world lifted off your shoulders. We at Rothschild & Ausbrooks believe that you should feel good about the decision you have made to wipe the slate clean and make a new financial start. 

However, as you congratulate yourself, remember that you still bear the responsibility for maintaining your newfound financial health. If you are not careful, you could fall back into the same habits and wind up in debt all over again. While it is possible to file for bankruptcy more than once in Tennessee, recent changes to the law have made it more difficult. It is best to avoid recurrent debt altogether. 

What to do after bankruptcy

One of the most helpful things you can do after filing for bankruptcy is to create a monthly budget and stick to it. If you do not know how to create a budget, you may find helpful resources from your bank, the government or through an online search. Once you have successfully made it out of debt, you should open and maintain a savings account, keeping at least three months’ salary in reserve at all times in case of emergency.

What not to do after bankruptcy

You should proceed with caution after discharging your debts through bankruptcy and resist the temptation to buy things that you cannot afford. This means being realistic about taking out a loan to purchase a large item such as a house or a car. It also means using credit cards sparingly and avoiding carrying a balance, even if it is only for one month. Under no circumstances should you ever take out a cash advance or a payday loan. 

Knowing what to do, and what not to do, after bankruptcy can help you stay out of debt for good. More information is available on our website. 

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