It was not easy as it took a great amount of work and sacrifice, but you got through your bankruptcy. You jumped one hurdle, but now you face many more on your way toward rebuilding your credit rating. There is no shame in filing for bankruptcy, which is often necessary to stay in your home and prevent financial hardship for your family.

But now you know that you must adapt to a new financial lifestyle and philosophy and stick with it. Otherwise, you may find yourself in the same dilemma. You were there once, and you do not want to return. Now, your bankruptcy has offered you the chance for a new beginning.

Post-bankruptcy offers new beginning

According to the American Bankruptcy Institute, a total of 33,766 bankruptcies were filed in Tennessee in 2019. The overwhelming majority of bankruptcies in the state were for Chapter 7 and Chapter 13. It is crucial to take a number of steps to help you forge a new financial life as part of your bankruptcy recovery program. Here are a few things to consider:

  • Start saving money and build an emergency fund. Save what you can.
  • Track your expenses. This allows you to see where your money goes. From there, you can determine what expenses to reduce or eliminate.
  • When you can, consider only paying in cash. If you have a credit card, use it infrequently or destroy it.
  • Check your credit report as it may contain errors.
  • Apply for a secured credit card. Designed for people who have no credit or bad credit, they resemble a typical credit card, but are backed by cash deposits you deposit into the account. Credit limits are equivalent to the amount of money in the account.
  • Maintain good physical and mental health. Get regular exercise, eat better food, become self-reliant while also surrounding yourself with trusted friends, and try to stay positive.

You made the first step by filing for bankruptcy and knew that this would be an extensive financial journey. Your success will be determined by the careful steps you take. You can do it. Though a bankruptcy can cause a small amount of inconvenience that is remediable with certain steps, the failure to file for bankruptcy in a timely manner could prove devastating.