Millions of people each year take advantage of the fresh start provided by the U.S. Bankruptcy Code. In many cases, people who file for bankruptcy are able to eliminate all of their debts and are often able to obtain credit in a relatively short period of time after their bankruptcy has been finalized.  As a result, many people who file can get into financial trouble again after completing their bankruptcy. Below are some tips for staying free of debt after bankruptcy.

Avoid unsecured debt

After a bankruptcy, consumers are often more attractive to potential lenders, as their debts have recently been eliminated. As a result, many people who have filed receive credit card offers shortly after they have obtained a discharge, albeit at extremely high interest rates. These kinds of offers should generally be avoided until a person’s credit score improves to the extent that they can once again obtain credit on more favorable terms.

Set a monthly budget

For many people who have filed for bankruptcy, living beyond their means was a direct cause of having to file. After a bankruptcy, people should set a budget that ensures that all financial obligations are met, provides for setting some money aside to place into savings, and also provides for discretionary spending.

Save Money each month

The best way to remain debt-free is to save as much money as possible. By having a substantial amount of money put away, people can avoid having to rely on credit for unexpected circumstances such as car repairs, medical expenses, or the loss of a job.

Nurture your credit score

As mentioned above, people who have recently filed are often offered credit on extremely unfavorable terms. Consumers should take the time to repair their credit score before utilizing credit for large purchases.

Some of the best ways to reestablish credit include secured credit cards, which allows a consumer to utilize a credit card by providing the lender with the amount of credit that will be extended, and paying bills on time.

Contact an Experienced Bankruptcy Lawyer Today to Learn About Your Options

If you are having trouble meeting your financial obligations, bankruptcy may be the right option for you. Attorney Michael Alan Siddons regularly helps people that are struggling financially in New Jersey, Pennsylvania, and Maryland.

To schedule a free consultation, call our office today at (610)-255-7500 or send us an email through our online contact form.