Bankruptcy is the hottest topic for you as an individual, for the state you live in and for the entire nation. We, as a country, have fallen prey to the government and its failure to protect us. For the last 3 years the number of bankruptcy filings has increased substantially. So, now you’ve filed your bankruptcy. What should you do to improve your finances? It’s time to get back up and start over. There is a way for you to start all over after bankruptcy.

But first, just so you know you’re not alone, in the past twelve months there were almost one million bankruptcies filed. Bankruptcy has become an epidemic. Now it’s time for you to make a fresh start.

First thing you should do is review your spending habits. Since most people spend more than they earn, their debt problem will be a never-ending cycle. After filing a Chapter 7, you will not be able to file again for 8 years. That’s why this article is important. You never want to go through bankruptcy again. So, the method I use when shopping is: is this a luxury or a necessity. Will I die if I don’t buy it? No, because usually the answer is that it’s a luxury. So I put it back on the shelf. If you want to start over after bankruptcy, live within your means.

Next you should review your recurring bills, add them up and make sure that money is available every month. You’ll be rewarded for paying your mortgage/rent and utility bills on time. That’s because every time you move, get a new apartment and sign up for utilities, you won’t be black-listed for having bad credit. You won’t have to make a deposit to have your utilities established.

Try living with cash. All of your credit cards should be gone by now. Don’t start any new ones until you have a substantial savings account. The saying is very true; always have a 3-6 month emergency fund. This is especially true in today’s world. There’s a lot less stress when you have something to fall back on. Make a plan to start over after bankruptcy.

Learn from your bankruptcy. Most people don’t realize that their old debt doesn’t just disappear. It has to be absorbed by people who do pay their bills. By learning how to start over after bankruptcy you could learn a new way of financial living. Put the past behind you and start living within your means.

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