Many of our clients wonder what happens after bankruptcy. The good news is, it is not that complicated. After your bankruptcy case has ended, you simply go on with your life. You live your life as you see fit. There is no one looking over your shoulder to scold you about purchasing a new pair of shoes or taking a family vacation. Creditors and debt collectors are not permitted to pick up where they left off and begin harassing you about debts that were discharged in your bankruptcy. In most cases, no one will ever know that you filed a bankruptcy case unless you tell them, they were directly involved with your bankruptcy case or you give them permission to access your credit report. In other words, what happens after bankruptcy is up to you.
It is our sincere hope that through the bankruptcy process we give you resources and tools that will help guide you through the process of rebuilding your financial foundation. We are not just interested in helping you eliminate debt — we are interested in preparing you for a better financial future by giving you a fresh start and equipping you with the tools and knowledge you need to weather the financial storms of life and come out stronger and more secure.
What happens after bankruptcy is up to you, but we want to help! In furtherance of our commitment to helping our clients continue to improve their finances and reach their financial goals, we are giving you several of our favorite financial quotes, with tips on how to apply these to your finances. We hope these will guide your future after filing bankruptcy.
"A Penny Saved Is A Penny Earned."
You may remember your parents and grandparents telling you this as you were growing up; unfortunately, many people dismiss this golden financial proverb as they grow up. Depending on who you ask, you may get several different interpretations. Some say that it does not make sense, as you cannot earn the same penny twice; however, it does relate to the idea of being thrifty and frugal. Simply put, saving your penny rather than wasting your penny is as valuable as earning a penny.
Think about how much work you performed to earn the money you are about to spend. A good rule of thumb for purchasing anything other than basic necessities is to translate the cost of your purchase into hours worked, and then decide if your purchase is worth the time it took to earn the money. In other words, if you earn $10 per hour and you want to purchase a brand new television for $1000, you would be required to work 100 hours to own that television. It is up to you to decide if that TV is worth the time spent to earn it.
"Balancing Your Money Is Key To Having Enough.” - Elizabeth Warren
Elizabeth Warren provides this wise piece of financial advice, and it is very applicable for anyone starting out after bankruptcy. Learning how to create a budget and live within it is essential to pay for the things you need and have those that you want. Budgets are not intended to deny you of the things that you want, they are intended to help you balance and manage your finances in such a way that you can save money toward your goals. Once you learn to live within a budget, you will find that you have more money for the things you want than you did before.
"The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.” - Dave Ramsey
Our finances are often driven by our behaviors – not our education or knowledge. Learning how to create a simple budget, manage money wisely and control our behaviors is one thing, actually doing it is what counts in the end. Changing your behavior toward finances and money can be challenging; however, through financial education and a strong determination, anyone can learn to conquer this challenge and develop behaviors that support a healthy financial future.
"Do Not Save What Is Left After Spending, But Spend What Is Left After Saving.” - Warren Buffet
It is difficult to save when we struggle to “keep up with the Joneses” or strain to let go of “wants” and focus more on needs. Unfortunately, many people fail to prepare for problems – not only because of limited funds or unrestricted spending limits, but because it is hard to see the value in money you save (until you need it).
Saving money should be a top priority after bankruptcy. You should pay yourself each month, in addition to paying your bills. You should have money set aside for emergency savings, general savings and retirement savings in your budget. It may take more effort on your part in the beginning; however, once you begin saving on a regular basis it will become easier and you will begin to see the benefit as your savings increases or if something happens and you need to withdraw from your emergency savings.
"Financial Fitness is Not a Pipe Dream or a State Of Mind, It's a Reality If You Are Willing to Pursue It and Embrace It.” - Will Robinson
Just like anything else worthwhile in life, having a solid, strong financial foundation requires effort, commitment and desire. If you want to build a strong financial future, you can and you will. However, you cannot let anything stand in your way.
If you made the decision to build a boat, where would you begin? You may first take a course or learn how to build boats, then you would buy the proper tools and equipment and finally you would dedicate time each day or week to work on your project until it was completed. If you ran into problems, you would find a way to solve them, but you would not give up.
The same is true with your finances. Educate yourself, give yourself the tools you need and dedicate time each day or week to work on improving your finances. If you stumble, get back up, shake it off and keep moving. You can have financial fitness if you really want it.
We are here to help you find an affordable solution, provide tips and share resources so you can begin your road to financial fitness.