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Create a budget to get back on track after bankruptcy

On Behalf of | Nov 8, 2019 | Firm News

Accumulating debt happens for a variety of reasons. Like many Arizonians, you may not truly understand how you went from one credit card to 15 seemingly overnight, and yet, here you are.

While bankruptcy is a personal choice that you must make for yourself, consider the positive outcomes. Stopping harassing debt collectors or court actions may relieve your stress. Regardless of whether you file Chapter 7 or 11, getting rid of some of the crippling debt may unburden you in the short term. What about life after bankruptcy? The firm of Phoenix Law aims to help you through the process and offer you some advice on how to keep on the financial straight and narrow.

Take time to budget

Allowing yourself to spend money you do not have on items you did not need may have gotten you into financial ruin. If this was the case, creating a budget while going through bankruptcy may help you adjust your spending habits. Pay cash for everything, even though after bankruptcy, you will likely receive credit card and financing offers, you do not want to become mired in debt.

Update financial plans frequently

Your budget should serve as your guide for making financial decisions daily. You should plan on revisiting and revising your budget regularly. Some people do so monthly, while others like to do it to sync up to their paychecks. Regardless of the timeframe you choose, getting a solid budget down may help you stay out of financial trouble in the future.

Bankruptcy may feel overwhelming, but it may alleviate the stress debt causes. To check out more information on the benefits of bankruptcy, visit our website here.