Bankruptcy is a legal tool that helps people get out of debt. Once credit card debt, medical debt, and other debt that can be erased through bankruptcy, most people have significantly more money left over each month after all living expenses are paid that is the time to analyze your budget. This means that after bankruptcy many individuals and families are better off financially and able to save more to ensure a better financial future.

Analyzing Your Monthly Expenses

  1. Make a list of all of your monthly expenses. Be mindful to include all expenses that may not occur monthly, like insurance premiums. Divide that total by twelve to calculate that monthly expense.
  2. Determine which monthly expenses are payments you make on debt. Include your mortgage, car payment, credit card payments, medical bills, payments on personal loans and other debts, and student loan payments.
  3. Determine which of your debts will be erased if you file for bankruptcy protection.
    • Credit card and medical debts are generally dischargeable (erased) through bankruptcy.
    • Student loan debts are nondischargeable (cannot be erased) through bankruptcy, so you will need to pay that debt back after bankruptcy.
    • You will likely be able to choose whether you want to keep your home and continue paying your mortgage. Similarly, you will likely get to choose if you want to retain your car and continue making your monthly car payment. Your various options regarding your house and car are dependent on your specific situation.
  4. Consider meeting with a bankruptcy attorney to review which of your debts can be erased in bankruptcy. We offer free consultations to anyone in or around Savannah, GA.
  5. Note which of your debts are regularly occurring and necessary living expenses but are not debt payments, such as rent, insurance, utilities, phone, groceries, gas, etc. These are expenses you will continue to pay during and after bankruptcy.

Once you have completed the above, add up your monthly payments on debts that will be erased through bankruptcy. That total represents the additional money you will have in your pocket each month after successfully filing for bankruptcy.

Determine if Bankruptcy Will Help You

Ideally, after bankruptcy, you will have more money freed up each month to cover expenses and put money away in savings. However, if prior to bankruptcy you were not making your monthly payments on credit cards or other dischargeable debts, then filing for bankruptcy may not be the only solution you will need to regain control of your finances.

If you are going to continue to struggle to pay your monthly living expenses even after your debts are erased through bankruptcy, then it is important for you to explore ways you can reasonably decrease your expenses or increase your income. It is not necessarily easy to find places to cut spending, so take a hard look at where your money goes. Perhaps you can cancel monthly subscriptions like cable or cell phone data service you don’t use. Increasing income may be even more challenging than decreasing expenses. Perhaps you are in a position to seek a promotion at work or you could explore a second job that you could reasonably fit into your schedule.

Free Consultation with a Bankruptcy Attorney

We’re committed to helping people get out of debt and gain the financial freedom they deserve. We invite you to learn more about who we are here. If you live in Savannah, GA or the surrounding areas and have questions about your debt relief options, let’s meet for a free consultation.

Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form. Follow us on Facebook for tips on getting out of debt!


We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. Find out more about Bankruptcy in our guide: All About Bankruptcy.

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