Filing for bankruptcy may seem like a tedious process, but it can be a life-changing decision that can help you get back on track financially.

The process of bankruptcy can also be overwhelming and confusing, especially if you are not sure what to expect.

One of the critical aspects of a bankruptcy case is debt management during and after the bankruptcy process.

Today you will discover seven tips for handling debt during bankruptcy.

1)) Understand The Different Types Of Debt

Before you begin filing for bankruptcy, it is essential to understand the different types of debt.

Debts are classified into three categories, including secured debts, unsecured debts, and priority debts.

Secured debts are backed by collateral, such as a mortgage or auto loan.

Unsecured debts have no collateral, such as credit cards or medical bills.

Priority debts are specific debts that are given priority over other debts, such as spousal support payments, taxes, and child support payments.

Understanding the different types of debt can help you prepare for the bankruptcy process and manage your debts effectively.

2)) Prioritize Your Expenses

During the bankruptcy process, it is essential to prioritize your expenses and focus on essential bills, such as rent/mortgage payments, utility bills, and living expenses.

Avoid spending on discretionary items until your bankruptcy case is settled.

This means cutting back on unnecessary expenses such as dining out, cable TV, and vacations.

Prioritizing essential expenses can help you focus on what's important and avoid getting deeper into debt.

3)) Work With Your Bankruptcy Attorney

Working with a bankruptcy attorney is one of the best ways to manage debt during bankruptcy.

An experienced bankruptcy attorney can help you navigate the bankruptcy process and provide valuable advice on debt management.

They can also negotiate with creditors on your behalf, ensuring that you get the best possible outcome for your bankruptcy case.

4)) Review Your Credit Reports

Reviewing your credit report regularly can help you stay on top of your debts and make sure that all your debts and payments are being accurately reported.

Credit reports can also contain errors that can negatively impact your credit score, so it is essential to review them thoroughly.

If you spot any errors, be sure to dispute them immediately.

5)) Build A Budget

Creating a budget can help you manage your debts and avoid falling deeper into debt.

Remember to account for essential expenses such as rent, utilities, food, and transportation, and allocate enough to cover those expenses each month.

If you have any disposable income, consider putting it towards paying off your debts.

6)) Avoid Taking On New Debt

It is important to avoid taking on any new debt during the bankruptcy process.

New loans or credit cards can complicate your bankruptcy case and make it harder to manage your debts.

Instead, focus on paying off your existing debts and building an emergency fund for unexpected expenses.

7)) Attend Financial Management Courses

Finally, attending financial management courses can help you learn how to manage your finances and debts effectively.

These courses can teach you how to budget, save money, and manage debts, which can help you build a better financial future for yourself.


Managing debt during bankruptcy can be challenging, but with the right tools and knowledge, it is possible.

Prioritizing essential expenses, working with your bankruptcy attorney, reviewing your credit reports, building a budget, avoiding new debt, and attending financial management courses are some of the best ways to manage debt during bankruptcy.

With these tips, you can successfully navigate the bankruptcy process and work towards a brighter financial future.

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