Limit your use of credit cards.

Many debtors who file bankruptcy have 10 or even 12 credit cards which are all maxed out. If you want to avoid more financial troubles after bankruptcy, limit the number of credit cards you use to two or three.


Reconcile your bank account.

Many debtors filing bankruptcy not only have credit card debt; they also have overdrawn bank accounts. Having a positive relationship with your bank is important, that's why it is essential that debtors avoid bouncing checks or overdrawing their account via a debit card. Ask your bank to disallow overdrafts on your account and make sure you keep close tabs on your balance and outstanding checks/automatic debit payments.


Do not "lend" your credit to others.

We all have that friend or relative who needs a loan or a co-signer. If you want to avoid trouble after bankruptcy avoid co-signing loans for friends and family. If they fail to pay their bills on time or default on the loan, it will show up on your credit report.


Create a spending budget.

Create a spending budget that allows you to spend your paycheck on paper before you receive it. Don't forget to set aside a little money for fun things. It will be difficult to stick to a budget that doesn't include "fun money."


Save at least 10 percent of your income.

With a savings account that can cover 3 to 6 months of your expenses, you will be less likely to get into financial trouble after bankruptcy. A fully funded savings account can help you weather financial storms such as a job loss or short-term illness.


Get insurance.

Purchasing health insurance and disability insurance will help you avoid a second bankruptcy if you get sick and are unable to work.