Managing debt
Woman working on papers
debt
6 ways to bounce back from bankruptcy

Pay yourself first
Next
2 of 8
Back
Pay yourself first

It may sound counterintuitive, but one of your first steps after bankruptcy should be rebuilding your savings, which were likely wiped out by filing, says lawyer David Leibowitz of Waukegan, Ill.

"Paying yourself first gives you a financial foundation to protect you against unexpected events in your life," says Leibowitz. "It's much better to have a rainy day fund than to have to depend on friends, family, relatives or even worse, payday loans."

According to Leibowitz, 5 percent of your net income can go a long way to rebuilding savings. And if you set up a recurring, automatic withdrawal from your checking to your savings account, you won't even have to think about it.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CREDIT CARDS WEEKLY NEWSLETTER
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

Debt Adviser

Is power of attorney status risky?

Dear Debt Adviser, I am so glad you recently posted a question about an elderly mother. My mother has dementia. Eight years ago, she opened a credit card for a family member who has now declared bankruptcy. My mother only... Read more

advertisement
Partner Center
advertisement

Connect with us