Essential Tips For Managing Debt After Bankruptcy

The information and materials contained on this website are provided for informational purposes only and does not constitute legal advice. While the information contained on this website is believed to be accurate, it is not guaranteed to be correct, complete, or up-to-date and you should not act or rely upon any information or materials on this website without seeking the advice of our licensed attorneys.

Debt is a common problem for many people. But if you're going through bankruptcy, it can seem like an insurmountable obstacle. Have no fear! You can get out of debt after bankruptcy with the right plan in place. Here are some tips to help you manage your debt post bankruptcy:

Cut out all unnecessary spending

Once you’ve filed for bankruptcy, there are several things you need to do to get your finances in order. One of the most important parts of this process is cutting out all unnecessary spending.

You must stop shopping for everything. This means no more trips to the mall, no more dining out at restaurants, and no more discretionary purchases like new clothes or shoes. If something breaks or needs replacing, then by all means get it fixed or replaced immediately; however, if a new item can wait until after your bankruptcy has been discharged (usually one year from filing), then put off buying it until after your discharge date has passed.

Stop using credit cards.

Credit cards are a trap. They can be expensive, and they can get you into debt quickly. This is why you should not use credit cards to pay for everyday expenses. You should only use them in emergencies, or if you have the money to pay off what you charge in full every month. If you don't have the money to pay for something, then don't buy it!

Stick to your budget.

  • Set a goal to pay down your debt.

  • Make sure you set aside money for savings.

  • Set up automatic payments for your bills.

  • Find ways to cut back on spending.

Take a second job or look for other extra income opportunities.

The first step is to start bringing in more income. You may have to take on a second job, which many people find difficult to manage given the long hours and lack of flexibility. Alternatively, you can look for other opportunities like starting a side business or selling items on eBay. If your house is paid off, rent it out while you’re at work! Even if it doesn’t make much money, even if it only covers some of your living expenses—it will help keep things going while giving you peace of mind that someone else is paying down your debt instead of letting it pile up even higher. Or perhaps sell your car and save up for something cheaper so there’s less money being allocated towards transportation costs each month (and remember: public transportation is free).

Determine how much debt you can afford to pay off each month.

  • Determine how much debt you can afford to pay off each month.

  • Make a list of all your debts, from smallest balance to largest.

  • List the minimum monthly payment for each debt (this is usually one-twelfth of the principal balance). Add up the minimum payments for all your debts and add this amount to your total net income each month. If you don’t have enough left over for all your necessary living expenses and bills, then consider using some of it for paying down debt instead.

Pay your bills on time every month.

This is one of the most important parts of managing your debt. If you don’t pay your bills on time every month, it can negatively affect your credit score and make it harder to get a loan or other financial services in the future. Here are some tips for making sure that you don't miss a payment:

  • Sign up for automatic payments. Most companies allow you to set up automatic payments through their website or mobile app, which makes it much easier than having to remember to send money every month.

  • Don't wait until the last minute or forget about paying something important like rent or utilities! Try setting reminders so that they pop up on your phone when bills are due each month so that you don't forget anything important!

Make larger payments when possible.

Once you’ve paid off your debts, it is important to make larger payments when possible. For example, if you have two loans with the same interest rate but different loan amounts, it makes sense to pay off the smaller balance before continuing to pay down the larger one. This allows you to continue saving money on interest costs and pay down your debt faster.

It's also important to consider which loans have penalties or fees associated with them if they are not paid in full or on time. By paying off these higher-interest loans first, you can save yourself from having additional penalties added onto an already existing balance.

Use the least amount of credit you can get by with.

Avoid using credit cards as much as possible. Credit cards are designed to allow you to make purchases on your own terms, but they're also designed to make you spend money that you don't have. If it's not an emergency or something you really need, pay for everything with cash—and be sure that the cash is in your wallet when you go shopping.

If you do have a credit card and use it for emergencies, make sure that those emergencies are real emergencies—not things like ordering more clothes online than you can afford because there was an amazing sale today (or even worse: buying a new phone because yours’s screen stopped working). If a friend offers to pay for dinner out and asks if he or she can put it on his/her card, politely decline—even if he/she insists that it’s no big deal!

You should also avoid paying off other credit cards with other credit cards—this never works out well!

If you make a plan and stick with it, you can get out of debt.

If you make a plan and stick with it, you can get out of debt.

The first step is to assess your debt situation by listing all of your debts from smallest to largest. Then, look at the interest rates on each one. If they're high (above 9%), consider consolidating that debt if possible. Once you have an idea of what needs to happen next in order to improve your financial situation and get out of debt once and for all, it's time to make a plan that will work for you based on the resources available in your life right now.


If you follow these tips, you’ll be able to manage your debt and get out of it. It may take time, but if you make a plan and stick with it, you can get out of debt.