You have recently emerged from bankruptcy, it is important to take a look at what caused the financial hardship and make sure you do not go down these paths again. Many people end up in bankruptcy due to bad luck (loss of job or medical issue) others have simply spent more than they could afford and the debt became over whelming. Remember: “Those who don’t learn from the mistakes of the past are doomed to repeat them.”

So how do you start over after bankruptcy? First get organized and start to rebuild your credit. Here are a few ideas to help you:

  1. Create a budget for your household, be detailed and make sure it includes savings.
  2. Cut out all of the extras for example premium cable service (just keep basic), monthly subscription to magazines, movies, etc and of course eating out.
  3. Pay all of your current bills on time all the time. Make sure you know what bills hit your credit report like mortgage, student loans, credit cards and always pay them before the due date.
  4. Get a pre-paid credit card that reports to the credit agencies and pay 80% of the balance every month.
  5. Stop and check your budget every month and adjust it as needed
  6. Talk to an accountant about your taxes and any option for a 401k or IRA to start to build a better financial plan.

Lastly know that bad things happen to good people and take advantage of this fresh start to build a better financial future. Some of the richest and most successful people in the world have filed bankruptcy to get back on their feet, so you are not alone.