Bankruptcy is widely said to give you a fresh start financially, and that’s exactly what it does. You can get out from under your debt and start again. It offers various ways to do this, such as liquidating assets with Chapter 7 or creating an affordable repayment plan with Chapter 13.

However, once you have that fresh start, you need to know how to make the most of it. A lot of that comes down to budgeting. Here are a few key steps to take as you get started.

1. Begin by listing out expenses that you cannot avoid. These are necessities. Be honest with yourself, and only list things you must have, not things that you want. Examples include paying the rent or buying groceries.
2. Keep track of what you spend every single day. Write it down and compare it against your income. Many people overspend and don’t even realize it, then they can’t see why their debt piles up again. Tracking allows you to see exactly where the money goes and what changes you can make.
3. Credit cards can help, but they’re also a risk. Consider them carefully. You may want to use one to build your credit score back up, but don’t use it to spend outside of your budget.
4. Try to put money aside for unexpected issues. One simple thing, like a car breaking down, can ruin your budget. Save money in advance so that you’re ready when it happens, rather than trying to find the money later.

These tips can help you move forward and have success. If you’re interested in getting that fresh start, be sure you know exactly what steps to take.