What Are the 5 Big Rules to Follow When Making a Budget after Bankruptcy?
Author: James Brown
If making a budget seems hard, try sticking to it! It is easy to just put off saving money until your next paycheck or buy that new TV you’ve been wanting, even if you can’t afford it. Unfortunately, if you start breaking the money management rules, you can find yourself right back in debt.
What are the five biggest rules to follow when attempting to manage your money? Here are 5 of the most important money management rules that could help you stay on track and out of debt.
1. Think about the future. When are you thinking of spending big money on something, ask yourself what you will think of that purchase in a week. How about a month? A year? 10 years? Impulsive purchase decisions often leave us with buyer’s remorse—and a whole new group of bills to accompany it.
2. Don’t spend too much of your income on your home and its expenses. Buying a house that you can’t really afford is setting yourself up for failure. Your mortgage, taxes, insurance, and other home expenses should only add up to 29% or less of your gross monthly income.
3. Don’t make your car payment a burden. Your car payment should be 15% or less of your net monthly income.
4. Keep an emergency fund. You should have at least 3 months worth of living expenses in a savings account. To be really safe, you could have 6 months of living expenses saved. With this rocky economic climate, it is better to be safe than sorry.
5. Leave room for leisure activities. It is important to have a little extra money in your budget for entertainment or leisure. Going to see a movie, taking a trip to the amusement park, or doing a little shopping can be a great way to keep your family healthy and happy. And if you have to choose between buying a material possession and experiencing something, choose experience. Research has shown that it makes us happier.
You don’t have to follow all these tips perfectly, but they are important to keep in mind. It is hard to judge where you are at with your own budget if you aren’t sure where you are supposed to be. Your life after bankruptcy can really only be a success if you avoid getting right back into debt. Your St. Louis bankruptcy attorney will be happy to help you get protection from foreclosure, credit card debt help and relief from creditors, but he or she won’t want to see you right back where you were before.
Article Source: http://www.articlesbase.com/law-articles/what-are-the-5-big-rules-to-follow-when-making-a-budget-after-bankruptcy-2679973.html
About the Author
Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can request a free copy at http://www.castlelaw.net
Complicated question for an attorney re: civil suit against former landlord who filed for bankruptcy?
I had a 3 year lease, my landlord lived out-of-state, he stopped paying the mortgage on the house I rented, used my rent money to pay on his home in TX and filed for bankruptcy when the IL house I was renting went into foreclosure.
I sent him notice that I was moving out in 45 days when I found out he was losing the house. I was current with rent, left the house immaculate (took pics, videos, and a statement from this real estate agent that I left the home in beautiful condition).
He agreed in writing to my move-out date, and also put in writing that HE broke our lease. I did not pay him the last month’s rent ($2000) because he owed me the $1800 security deposit and another $475 in lawncare expenses and some smaller maintenance expenses (I have that in writing from him, too). As he had filed BK I did not feel he would pay me those monies which I why I did not pay the last month’s rent.
LOOOONG story short, he sued me for the last month’s rent, added on another $1000 for the 5 days extra I took to finish moving out (he was not offering the home to rent to anyone else, no one was viewing the home – he lost no money as a result of those 5 days).
The day of court, I showed up with my attorney, all my paperwork, receipts, etc and my landlord did not show up but his attorney did. 11 months later I missed a follow-up court date as I was NEVER served or sent notice of the appearance and of course, a default judgment was made, plus fees for his attorney and court costs.
Sorry, long-winded – but here is my question: Can I sue the landlord for return of my security deposit, the lawncare service fees, etc – all the things I have in writing that he owes me? The attorney I had initially hired cost me $650 to show up in court the day my landlord did not. As he already filed for bankruptcy, if I won, he would have to pay me, correct? He is working – I know what company he is now at.
I am in IL and he is in TX which I understand has some kind of homestead rule where creditors cannot put liens on property or garnishee paychecks.
Thank you for advice!
Thank you both very much for replying.
The ex landlord filed his BK over a year ago, so I would think it would be completed by now. I figured anything he gets sued for after it is discharged, he would need to pay? I am certain the money he owed me was not included in his filing – I was never contacted by the court as a creditor.
I do not have funds right now to pay my attorney additional money (got laid off a few months back). So…no money for him – no help from him.
Regarding my getting served about the second court date – no I did not move. When I called the landlord’s attorney, he stated he sent me a notice via regular mail to my correct address. Did not get it. I am working on getting the judgment set aside, but as I found out about the default judgment more than 30 days after the fact, this is a bit difficult.
You are good folks for helping me out – thanks!
I do believe it is against the law in Texas to garnish wages for any debt, sucks but true. Texas seems to be the greatest state to live in when it comes to debt collections, as it can’t be touched. But, I think bank levies can be done, since income is from work, but once it goes into a bank account it is fair game. Check with an attorney about this. He should not have been able to get away without serving you notice of a court date, and for this reason alone, you should make a motion to the court to set aside the judgment due to improper service or no service at all in your case.