Thomas F. Miles, Attorney and Counselor at Law
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Managing money after debt reorganization and bankruptcy

Emerging from a successful personal bankruptcy process provides a deep sense of relief to many California consumers. The time that follows is a period during which it is important to make well-informed financial decisions. Debt reorganization can provide consumers with the ability to regain control over their finances, but without the proper precautions it is possible to sink back into unmanageable debt.

One of the most important things to focus on after a successful personal bankruptcy is building a financial cushion. No matter how much an individual earns or what his or her monthly expenses might be, it is always possible to set aside a small amount into a dedicated savings account. Over time, these savings will build, leading to increased financial security.

Making changes to one's spending habits is also an important consideration after successful debt reduction. For some, this means avoiding the use of credit cards. For others, finding ways to reduce living expenses is the best way to curb spending. One option is choosing to own a quality used car instead of borrowing to finance a new vehicle. For those who are interested in going back to school, choosing affordable options, such as community college over more expensive schools, can help avoid the accumulation of new debt.

The financial freedom that comes with a successful personal bankruptcy can bring a huge sense of relief for those in California who have struggled with debt for many years. However, debt reorganization only offers an opportunity for a fresh start; in order to avoid similar circumstances in the years to come, consumers must make adjustments to their spending and saving habits. At the end of the day, financial security is created by the many small decisions that individuals make throughout the course of their lives.

Source:, "6 Ways to Maintain a Debt-Free Lifestyle", Chloe Della Costa, Sept. 2, 2016

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Thomas F. Miles, Attorney and Counselor at Law
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