Many clients are amazed at how quickly and easily they are able to obtain their discharge in a bankruptcy case. They were scared of their neighbors finding out, their employers finding out, and all of their creditors showing up in an angry mob against them. When none of those things happen, and their discharge arrives in the mail, they are relieved and happy.
I always warn my clients that the discharge is just the first step. What you do after your bankruptcy is often the key ingredient to permanent financial success. Bankruptcy gives you another chance, but the rest is up to you.
Here are three things I suggest doing after bankruptcy:
Start an Emergency Fund. The goal is to save enough money to protect your family in case of unemployment. Keep saving until you have 6 months salary in this bank account, and then try not to touch it.
Feed Your Retirement Account. This is a great way to save, and many people do not even notice their 401(k) money is missing from their paycheck through an automatic deduction. If your employer matches, well, then you must keep working hard until you are able to contribute the full amount.
Follow Your Budget. Part of the bankruptcy process is discovering where you are spending money each month. When you discover areas of waste, eliminate then after your bankruptcy case. If you can bring in more income through a second job, that helps give you more flexibility each month.
Success in bankruptcy is determined long after your discharge has been achieved. Bankruptcy wipes away your past debts, and it is up to you to take advantage of your second chance at financial freedom. If you are ready to get started, and live in Western North Carolina, I would be pleased to speak with you during a free, initial consultation.
