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What can you do to avoid debt after a bankruptcy filing?

Millions of Americans have gone through the bankruptcy process, eliminating debt and getting a fresh start. Our readers who are familiar with previous posts here probably know by now that there are a variety of benefits that Escondido residents could take advantage of in a bankruptcy filing: wiping out debt, putting an end to creditor harassment and doing away with the monthly angst of not being able to make even minimum payments on debts.

But, the real work begins after the bankruptcy process is over. Sure, the filer comes out on the other side of the process with a clean slate, but what then? What can Escondido residents do to avoid going back into debt after a bankruptcy filing is complete?

The first and most obvious step? - Change your ways. Whatever financial challenges existed that led to the bankruptcy filing to begin with should be wiped away. But, it will be important to work toward rebuilding credit. So, if the filer decides to use credit cards again, it is a good idea to keep a very accurate account of all expenditures on the credit cards. And, if possible, make the amounts small, so that the monthly statement can be paid in full each month.

For those who plan to avoid credit cards altogether after filing for bankruptcy, a cash-based approach to finances may be a good idea. This means that no purchases are made unless the person has the cash on hand. Taking this approach even further, the person could take only the cash that is intended to be spent when they go shopping - leave everything else at home.

Source: FindLaw, "Tips for Avoiding Debt," Accessed Sept. 12, 2015

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