Bankruptcy can be an effective way of getting a new financial start. However, you will still need to take steps after bankruptcy to keep yourself on track. By reorganizing your finances after bankruptcy, you can take charge of your future and pave the way to a more secure and stable financial life.
Make a Plan With Your Bankruptcy Lawyer
One step in this process is to seek the guidance of your bankruptcy lawyer. They should be experts in navigating the complexities of bankruptcy law but also be very familiar with your unique financial situation and can offer valuable insights and recommendations. At Kain + Henehan, we encourage our clients to come up with a comprehensive plan to further take advantage of their successful bankruptcy discharge. We know that personal bankruptcy often is the best choice for individuals but we want them to then thrive afterwards. For example, here are some suggestions:
Save an Emergency Fund
In many cases, individuals and/or families end up in desperate circumstances due to unexpected emergencies such as an illness that runs up uncovered medical expenses. If possible, establish an emergency fund. Unexpected expenses can arise anytime, and having a financial safety net will help prevent a fall back into a cycle of debt. The general rule of thumb is to save at least three to six months’ worth of living expenses in a separate account that you can access in times of need.
Learn How to Manage Your Money
Seek financial knowledge and education. With the internet, there are tons of money management advice sites that can give you good tips on budgeting, shopping, and saving. For example, CNBC offered recently a blog on the best free budgeting tools of 2023 or see our own blog on the Basics of Budgeting. Perhaps take advantage of resources such as financial workshops, online courses, and books to improve your financial literacy. The more you understand about managing money, the better equipped you will be to make wise financial decisions and avoid future pitfalls.
Set Up Auto Payments
Setting up auto payments online for each of your accounts can ensure that bills are paid in full and on time. Credit scores improve with on time payments and paying off balances. You can take pride in watching your credit score improve. Most accounts, such as credit cards, utilities, and cellular phone bills, make setting up automatic payments easy.
Consult With Minnesota Bankruptcy Lawyers Kain + Henehan
Taking that first step to get a handle on your financial struggle is an important and brave one. It is actually empowering to rebuild your financial life. With the the right advice and caring guidance, we can help you choose a bankruptcy plan that can get you back on track. At Kain + Henehan, we know it can be intimidating to think about bankruptcy. That is why we do everything in our power to make you feel welcomed by our offices in St. Cloud or Mendota Heights. We are here to make you comfortable from the very first phone call. Our 4 step process is designed to be as easy and convenient as possible.
Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form to learn more about bankruptcy from an experienced Minnesota bankruptcy lawyer.
