How is your life different post BK?

[rck3]

Aside from worrying about the bills and such, how do you have to live your life different?

We are still tryign to figure out what is best but I guess the biggest worry is how things will be different after in terms of living our lives in a bad way. We don't splurge and didnt use the CC For fun/luxury so we won't miss those things. Just scary to wonder how our life will be after. I know our credit is done for a while but at the same time I also know that even though we have a great score now it means nothing since no one will let us borrow anyway.

[Amadan]

Only a few months into it, and not confirmed yet either. But so far its been getting better. We were pretty much paying everything we made to our debt and then using the cc's for things we needed to get by (like groceries and utilities). Now we have a budget that actually allows us to lead a somewhat normal life, according to IRS standards of living. Whats left over goes to the cc's and not the other way around. Nice for a change.

[keepmine]

Biggest thing is, learning to live on a cash basis and putting money in the bank and using that for large purchases.
I'd strongly encourage you and your spouse to max out your 401K, open an IRA and have both long and short term disability policies.

[chriselle]

After filing my life was different. Instead of paying $600 in interest along every month, I get that divided to things I need and if any leftover goes to savings. I am able to take advantage of saving 6% to my 401K. As for everything else, I still got my phone and stuff I use on a daily basis, maybe no one will let me finance something this year but I can live with that.

[readytofile]

The difference is that I now have a savings account and I set up money to automatically go into it every month instead of paying minimum balances on credit cards. It is scary though because you have to have an emergency account set up because you don't have credit to fall back on if something major goes up in the cars or the house.

In our case my husband fell at work and has been out for 2 months. They just started paying him so our savings was essential in keeping our bills current. Luckily his pay came in right on the last possible day to pay the mortgage without being late. All the other utilities were able to be paid on time thanks to that savings account. Now I have to start from scratch saving and hope that nothing goes up in that time.

[meateater]

The biggest difference for me is knowing what my monthly expenses are, and knowing where my money is going. Before, I would deposit my paycheck in the bank to pay my overdraft, use the newly paid-down overdraft to pay credit cards, and then use the freed-up credit to pay for food, etc. In hindsight, I didn't know how much I was spending (even though there were few expenditures that anyone could call a luxury, mostly I spent on food, gas, car repairs, etc.). Interest and bank fees quickly added up.

Post-BK, I know how much my monthly expenses are, and I pay all bills off in full each month. I have savings and a retirement account. I no longer think I'm getting a good deal by using a credit card to buy something that's on sale if I can't pay the credit card off.

I suggest that anyone looking at the other side of bankruptcy look at the Dave Ramsey (or other personal finance) books - there's good tips about how to manage one's finances (I ignore the anti-bankruptcy stuff and focus on the lessons about managing finances, which is something I did not learn until I was in my 30's). I used to think everyone used credit cards the way I did and was in debt, these books gave me a new way of thinking. I cringe thinking about how I used to be with money.

[tigerm]

I tell you what, I have a new and very real fear of debt. I could care less if I ever "own" a house again or have a "newish" car. If I never see another credit card in my lifetime, I will die a happy woman. I have never been through a more uncertain, fearful time in my life. And when it's all said and done, I hope I never experience anything even sorta like this again. BK, repo, and foreclosure.... I'll pass. Never, never, never again. Cash only for the rest of my God given life. ***sigh***

[UWFan]

I tell you what, I have a new and very real fear of debt. I could care less if I ever "own" a house again or have a "newish" car. If I never see another credit card in my lifetime, I will die a happy woman. I have never been through a more uncertain, fearful time in my life. And when it's all said and done, I hope I never experience anything even sorta like this again. BK, repo, and foreclosure.... I'll pass. Never, never, never again. Cash only for the rest of my God given life. ***sigh***

Amen. My ordeal is not even close to being over, but I can't wait for the day when this is over. I have lost my lust for things. If I can't pay cash, I aint gonna buy it.

[ApresMoi]

Carrying 40K in credit card debt may not like much to some, but that took it's toll on me during the years that I had it. I always had a plan for getting rid of it, but life 'events' kept getting in the way. After the last job loss, I finally gave up caring whether I ever paid the banks back. My only regret now is that I did not file for BK sooner. It was a real mistake to wait until I was practically destitute.

[bobbyquefour]

My life is completely different. If I don't have cash, it doesn't get bought. When I look at the menu, I don't always peruse the most expensive entrees first. When I go to buy shoes, I buy one pair instead of charging two and pay cash and keep better care of the pair I bought and walk out with a big grin knowing I don't owe anyone a DIME... I've been totally humbled and have learned the value of the dollar and don't intend to EVER have CC debt again....savings only, or it just won't get bought...people seem to forget that there were not always credit cards....so for emergencies I am going to save CASH for them.....Totally and utterly changed my life....

[thereshope]

My life has gotten a lot better. I received 17% increase in bonuses and raises after discharge in January.

I stick to my budget, have some savings set aside, don't eat out much and not using credit cards. Although, I have one secured card for a trip that I'm taking soon. I'll never feel the same about credit cards, buying rental property or investing in business.

[SeattleBK]

My life is much better.

Even though I still don't have a permanent JOB(my reason for filing BK), I live quite nicely on temporary jobs and unemployment benefits.

I'm doing a whole lot better than I was before. Before I was eating beans just so I could make a credit card payment.

Today, I'm on a budget and live on a cash basis only, but I'm able to eat a healthy diet, have a few $$ for recreation and some savings and I'm not too afraid of being homeless anymore.

I actually got two credit card offers in the mail today, and I suddenly had a sick feeling remembering how it felt to receive mail from credit card companies when I was in debt.

[epiphany]

Carrying 40K in credit card debt may not like much to some, but that took it's toll on me during the years that I had it. I always had a plan for getting rid of it, but life 'events' kept getting in the way. After the last job loss, I finally gave up caring whether I ever paid the banks back. My only regret now is that I did not file for BK sooner. It was a real mistake to wait until I was practically destitute.

Amen to that! Had I filed sooner (filed chapter 7 in August of 2008), I would have been well sooner (discharged in February of 2009) and would be better off right now. Filing gave me a new lease on life. I was able to quit my full time job and concentrate growing my small business. Neither I nor my business owes anyone anything. And that's a great feeling.

I also moved out of the armpit of Los Angeles to a really nice area of California. Moved in with a friend who has a house (never ever thought I would be doing the roommate thing again at this stage in my life) and cut my living expenses in half.

So, I don't go to a job I hate everyday and I don't owe anybody any money. I haven't been able to save anything yet but I'll get there. Life is good.

ep

[Patch]

peace of mind,I sleep at night!!
I found a job,and we put all my income in a saving.
I had to go to the pediatrician's today with my youngest,I spent $75 between the visit and the 3 prescritions,I paid cash,and didn't even think twice!
noone call us anymore,the bills are paid on time,cash is great!
there is a change in our kids behavior,they seem to be happier,since we are calmer,and we are less stressed!

[jtindisguise]

I've made some changes... mostly sacrifices. I do not regret any of them.

My fancy Caddy is gone a I now drive a Honda
I do not have cable tv... just a $25 antenna in the garage
I do not make impulse buys (see car statement) that I truly regret later
I put 15% of my paycheck in my 401K
I paid off a student loan

All in all... I'm much happier... and healthier without the financial stress.