How to Maximize the Benefits of the Financial Management Course
After bankruptcy reform was passed in 2005, debtors filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy were required to take a personal financial management course before they could receive their bankruptcy discharge. Bankruptcy debtors who fail to take the personal financial management course within 45 days after filing bankruptcy will not receive their bankruptcy discharge. But taking the personal financial management course isn't just about getting a bankruptcy discharge, it's about increasing your financial literacy so that you're better prepared to take advantage of your fresh financial start.
Below are a few tips on how to maximize the benefits of the financial management course:
Learning To Create Short-Term And Tong-Term Financial Goals
After bankruptcy it will be important to create both short-term and long-term financial goals if you want to successfully leverage your bankruptcy discharge. The personal financial management course is designed to teach you the fundamentals. However, bankruptcy debtors should take action on what they have learned by taking baby steps in the direction of those goals. For example, opening a secured credit card after bankruptcy and/or beginning to save for a home down payment are both effective steps in moving towards your post-bankruptcy goals.
Creating An Effective Budget After Bankruptcy
The personal financial management course will include budget creation instruction. But bankruptcy debtors need to make sure their budgets work for them. Remember, there is no one way to create a budget after bankruptcy. The most important factor in budget creation is creating a budget which is feasible and one which you're willing to stick with.
Balancing Your Checking Account
Whether you're filing bankruptcy or not, balancing a checking account the old-fashioned way isn't something most do. However, bankruptcy debtors who want to avoid problems should make sure that they have a system created which will minimize the risk of overdrafts and bounced checks.