If you’ve already gone through the process of filing for bankruptcy in California, you might be wondering what to do next. Here are three things that you should do after your bankruptcy case is closed:
#1: Save all of your bankruptcy stuff
Hold onto your bankruptcy paperwork after your case is closed. You may need information about your bankruptcy when you apply for a loan in the future or if an old collections agent ever contacts you.
#2: Create a budget
You probably want your life after bankruptcy to be free of overwhelming debts that you can’t afford. To avoid making the same mistakes again, you should start by doing a detailed budget. Write down every expense that you have each month and how much money you have coming in. If your expenses are greater than your income, you’ll need to cut some expenses or find ways to increase your income.
#3: Start rebuilding your credit
It might sound scary to take out a credit card after bankruptcy. However, you will need to carefully use credit cards to rebuild your credit history and maintain a high credit score. The trick is to never spend more on a credit card than you can afford to pay back at the end of each month.
Filing for bankruptcy is financial rock bottom for a lot of people. You’ve probably been through a lot of personal stress as your debts were piling up over the years. While you’re changing your financial habits and rebuilding your credit, don’t forget to take a moment to appreciate the freedom from debt and the fresh start you now have.