Filing for personal bankruptcy can be a stressful process that may feel like an enormous defeat. However, it can also be a significant help to anyone who’s found themselves drowning in debt. As long as you’re cautious and disciplined, you can repair your credit, restructure your finances, and get back on your feet. Following the steps below will help you rebuild your life after bankruptcy.

What to Do After Filing for Personal Bankruptcy

1. Keep Organized Records

Make sure you retain all documents relevant to your personal bankruptcy case, including filing notices, discharge orders, credit counseling certificates, and the original petition. This paperwork is crucial, and you’ll likely need it at on a later date. For example, most mortgage lenders will review copies of your bankruptcy records before considering you for a new line of credit.

2. Monitor Your Credit

After you file for personal bankruptcy, it takes credit agencies about three to six months to update your report. Make sure that this happens and check your report regularly afterward. You’ve taken significant steps to get back to a zero balance, and you should ensure you catch any errors or discrepancies so you can report them right away. You are entitled to a free credit report from each of the 3 credit reporting agencies yearly. Go to: www.annualcreditreport.com .

3. Create a Budget

Don’t fall back into old spending habits that got you in trouble originally. Create a detailed post-bankruptcy budget for yourself and follow it carefully. It’s the best way to make sure you have a solid understanding of your financial situation and are not living beyond your means. If you are married or in a relationship where you are sharing expenses make sure you communicate with that person regularly about your finances, both individually and jointly.

4. Start Saving

Now that your debt is clear and you are following a strict budget, you may find yourself with extra cash at the end of the month. Resist the urge to spend it on non-essential items, and put it into an emergency fund instead. Doing so helps keep your financial footing and give you relief if you face an unexpected expense, such as vehicle repairs or medical bills. Also make sure you make a decision on how to spend your money rather than letting it slip through your fingers on spur of the moment purchases.

For legal advice regarding bankruptcy, turn to Nancy V. Jacob. Practicing out of Cincinnati, OH, this seasoned attorney has been helping consumers discharge debt since 1989. Nancy understands the kind of stress her clients are under, and she never judges them for their circumstances. Instead, she aims to help them devise the best strategy possible for achieving debt relief. To learn more about working with this bankruptcy lawyer, visit her website, and then call (513) 921-1400 to schedule an initial consultation.