Realizing that you should file for bankruptcy may make you wonder about your future. One of the most important things you can do when you figure out that bankruptcy is your next step is to take a deep breath and focus on the fresh financial start you’re getting.
Once you file bankruptcy, you’ll likely have a limited budget. This is especially true in a Chapter 13 bankruptcy requiring you to pay the bankruptcy trustee. Consider these ways to help you thrive during this transitory time:
1. Write up a complete budget for your monthly bills
Knowing your income and bills each month helps you to prepare for expenses. Take the time to write out everything related to your finances so you know exactly where you stand. This is a perfect opportunity to cut costs, such as unused streaming services. Remember, this is only temporary. You can likely reintroduce some of these after the bankruptcy.
2. Don’t compare your situation to other people’s situations
It’s easy to fall into the temptation of comparing your current situation with your friends and family. Remember that what you see on social media is only part of the story. There’s a good chance that your friend’s new boat comes with hefty monthly payments, causing some anxiety.
3. Set specific goals for your financial life and use your experience
During the bankruptcy process, you learn new money management skills. Use these skills to build the goals for the financial life you want once your bankruptcy is discharged.
Ultimately, the decision to file bankruptcy is one that’s well thought out. Working with someone familiar with these cases is critical to learn more about your responsibilities and rights as you go through this process.
