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If you fell behind in your secured debt and the bankruptcy court approved a payment plan for you. You may be wondering how you can live so frugally during the three to five years you will be paying the court toward your past debt. Filing bankruptcy can provide you with a fresh financial start, and save you from collection calls or lawsuits.

Besides losing your job, or unexpectedly large bills, one reason for going bankrupt is spending habits and a lack of proper saving measures. A lifestyle change with minimal spending might help you get through the next few years on a tight budget on your Chapter 13 plan.

Here are some tips to help you during your Chapter 13 repayment plan:

∙ Cutting off your credit card usage can help. When you pay cash for your expenses, you tend to stay in control of your spending.
∙ One of your most substantial expenses is probably your mortgage or rent. Moving to a smaller place can make a huge difference to your budget.
∙ Switching to an older reliable vehicle will save money on car payments. If you have an extra vehicle that you mainly use for recreation, try selling it.
∙ Workout at home to save money on a gym membership.
∙ Avoid dining out and instead, cook at home more often. Cutting down on alcohol can also save you money.

One very effective way to never go bankrupt again is to have an emergency fund. Once you are back on your feet, attempt to save money and cut expenses.

If you are overwhelmed in debt and considering bankruptcy, contact a Folsom bankruptcy attorney to find out how you can get financial relief.