July 2011 Update

It's been about 9 months since our case was discharged and I really have no good Bankruptcy news or drama. Things have been smooth and easy, thank goodness...

We were able to refinance our mortgage a few months ago, which was a huge relief. But, I must say, we have sort of a special circumstance that didn't factor in the Bankruptcy - if it wasn't for the fact that we have a VA (Veteran's Affairs) guaranteed mortgage, we may not have been able to refinance this close to Bankruptcy. Luckily, with VA guaranteed mortgages, you need no income verification, no appraisal, and no in-depth credit checks. The only thing the lender cares about is that you've been on time with your payments for the last 1-2 years. So, as a result of the refinance, we are saving about $300 per month, which helps out a lot these days.

With the breathing room we gained since 2009 (when we originally filed the Bankruptcy petition), we've actually been able to start following Dave Ramsey's Baby Steps (we tried before the bankruptcy and it was what led us to the Bankruptcy decision). If you're familiar with Dave Ramsey's Baby Steps, you'll recognize that Baby Step #2 - the debt-snowball - was essentially accomplished through the Bankruptcy, but it's still been a challenge putting forth the effort to change our habits and save up for Baby Step #1 - The $1,000 Emergency fund! We still have a lot of progress to make and it seems like Murphy's Law truly does kick in just when you feel like you're making progress...Recently, we've had to buy two sets of brand-new tires and repair one of our vehicles.

Oh yes, I did forget - we did accomplish part of Baby Step #1 on our own - we have paid off other debts that were not covered in the Bankruptcy. It felt very good to pay off not one, not two, but THREE of our student loans! One more remains, but considering it's in the $30,000 range, we'll take our time and not stretch ourselves too thin trying to pay it off, though it will feel nice when we do!

All in all, things are going well. Like I said, we still have some work to do to change our personal saving and spending habits, but it is nice to have that wiggle room, instead of feeling pushed against the wall every single payday. It feels good to be on a 100% cash basis.