Utilizing a budget sheet is not only helpful when trying to minimize costs and track spending, but also can be extremely useful during and after bankruptcy filing is complete. You are going to be required to complete a budget sheet to assess whether you qualify for Chapter 7 or Chapter 13 bankruptcy anyway, so it makes sense to utilize this requirement to benefit you even after the bankruptcy proceedings have ceased.
Completing a budget sheet can be particularly difficult if you do not have an accurate account of your monthly or daily expenses. In many cases, it is this lack of accounting that allows for spending beyond one’s means. Once you go through the process of compiling your expenses and completing a budget sheet, your budget can be used for many other purposes to help create financial stability in your life and avoid ever having to file for bankruptcy again.
Using a Budget Sheet Post-Bankruptcy
There are some circumstances in life that can bring about bankruptcy that have nothing to do with personal spending habits, such asan unforeseen accident that leads to grandiose medical bills. Regardless of the reason that you decide to file for bankruptcy, there are very practical uses for a budget sheet that should most certainly be taken advantage of.
A budget sheet provides a detailed and very informative breakdown of all your monthly expenses. One key way to prevent bankruptcy in the future is to keep track of spending and be cognizant of these expenses. The first step to keeping track of expenses is to take inventory of where the money goes.
Adjusting to life after bankruptcy can be very difficult. Many people who file for bankruptcy are victims of poor spending habits and financial planning. It will be quite difficult to reverse the effects of poor money management without taking an inventory of where all your money goes each and every month. Expecting things to change without properly evaluating the situation will almost guarantee a cyclic return to bankruptcy sometime in the future. After your bankruptcy has been completed, you want to utilize the budget sheet to map out exactly where you need to make some changes to your spending. This will give you a starting point and show you the major pitfalls in your spending habits that may have been the source of your bankruptcy.
If you or a loved one has filed for bankruptcy, is considering filing for bankruptcy or has any questions regarding bankruptcy filing and creating a budget sheet, contact Morgan & Morgan today for a free consultation with an experienced bankruptcy attorney.