One of life’s least enjoyable tasks is to come up with a budget that works. But once you are able to get on track, and stay on track with your money each month, you can begin to live a life of financial freedom. In many instances the best way to get a fresh start so you can get on a budget is to file bankruptcy. But even filing bankruptcy takes some financial planning.
Budgeting tips for before, during, and after a bankruptcy, so you can live life debt free, include:
● Before you file: get all of your bills lined up and write down who you owe what to, and how much you have to pay each creditor every month. You should also write down your monthly income, so you can see how much money you have coming in each month. This way you will be able to identify what you pay, and what you make, and will know how short you are each pay period.
● During your case: you will have to decide what to keep paying for, and what you will have to return to the lender. To do this you will need to know what bills you will have once your bankruptcy is over, and this will include deciding what debts to reaffirm during your case. As soon as you know what you don’t have to keep paying vs. what you do have to keep paying for, you will be ready to move on to the next phase.
● After your case: when your bankruptcy case is over you will have a clear picture of what debts you still owe, and which debts have been eliminated. Now is the time to write up a new budget, and include only those debts that remain. The goal is to have more income now than debts, and to maintain that status. You can do this be cutting out unnecessary expenses, and by resisting the urge to splurge. Start up a savings or emergency account, so when you have an expense or event come up you don’t have to use a credit card or take out a loan to cover the financial need.
Eliminating debt through bankruptcy puts you on the path toward financial freedom. Let us help.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.