If you are considering filing for bankruptcy you are most likely more worried about your current debt loads rather than your day to day finances. While finding debt relief is your ultimate goal, there are some things you should prioritize with your current finances.
Managing your money in bankruptcy is just as important as after your debt discharge for several reasons. First, many people don’t realize that acquiring more debt prior to, or during, their bankruptcy case can be problematic. There are rules about including debts in your bankruptcy discharge. If you accumulate too much debt in the months leading up to your case, or while in an active bankruptcy, these debts could be disqualified from your discharge. The general rule is to keep your financial history as steady as possible. In other words, don’t take on more debt, pay off large balances or make big changes to your income voluntarily. Consistency is key.
Another aspect people often forget when working towards debt relief is their plan for financial goals. Often waiting until after their case is complete, many people fail to address the issue of budgeting, saving and setting credit goals. It is important to begin putting into practice the skills learned in the debtor’s education course before your case is discharged. Set a budget for your monthly expenses, including prioritizing your savings account. Start an emergency fund to serve as a buffer in case of a future financial hardship. Begin researching ways to rebuild your credit after bankruptcy.
Your Dayton bankruptcy attorney is a valuable resource for helping you get back on track. Keep your attorney informed of any changes to your finances and seek help with your goals for the future.