Staying Debt Free Following Bankruptcy

Nowadays many people have given in to the temptation of instant gratification that comes along with easy credit. They feel that it is okay to live above their income level by relying on credit as the means to take them to that next level. It is easy to buy and have it now, then worry about paying for it later on down the road. However, as the debt increases the payments on those monthly bills never seem to stop. Soon living paycheck to paycheck becomes a reality for these individuals.

All it takes at this point is for one large unexpected circumstance to occur such as a car repair or major illness and the individual’s finances are sent into a tailspin. The money is no longer available and the credit cards are tapped out, so the decision then becomes to feed the family or feed the creditors. When someone is struggling with overwhelming debt, sometimes the best and only way out is to file bankruptcy.

Bankruptcy was created for honest individuals who have found themselves in financial distress and are looking for a fresh star. Bankruptcy was designed to offer people a new beginning, not as a punishment for past mistakes. The thing to keep in mind is that the individual must make some changes in the way they live following a bankruptcy filing. They should learn from the credit counseling and personal financial management courses that they were required to take to get their bankruptcy discharge from the court and apply the information in their new life. This sometimes requires taking a different view of the world and their life as they integrate their newfound financial education.

For instance, they must be realistic and maybe not drive the same car that they used to or buy the same clothes that they were used to wearing. Eating out should be a rarity or special occasion instead of an everyday occurrence. Entertainment should also be curtailed and saved for special occasions. The bottom line is, the individual must adhere to a strict budget to stay living within their means and not again rack up debt. Offers for credit will start flooding the individual shortly following their bankruptcy discharge, so they must be careful to start rebuilding their credit slowly. Start with one card and make small purchases but pay them off every month.

Just by budgeting and cutting back a little, people are pretty surprised to see how long they can actually live debt free following their bankruptcy.