How can I Avoid a Second Bankruptcy

Once you declare Chapter 7 bankruptcy, you get a clean slate to start over. If you file a Chapter 13 bankruptcy, you get the chance reorganize your debt and slowly settle your creditors. But, it may be simple to fall back on debt. Statistics show that between 8% and 16 percent of all bankruptcies filed are repeat figures. Even though no one wants to declare bankruptcy, it might appear that filing a second bankruptcy may happen all too frequently.

How often can I File Bankruptcy?

There are limitations to how frequently debt can be released by bankruptcy. Time is determined based on the filing date of your previous bankruptcy.

• Chapter 7 bankruptcy followed by another Chapter 7: Eight years.
• Chapter 13 bankruptcy followed by another Chapter 13: 2 years.
• Chapter 13 bankruptcy followed by a Chapter 7Six years, but sooner if you paid off your unsecured creditors in full, or at least 70% of the claims and your plan has been made in good faith.
• Chapter 7 bankruptcy followed by Chapter 13: Four years.

Even though you might be eligible for submit a second bankruptcy, it doesn’t mean it’s your best option.

Instead, consider taking the following measures to save you from needing to submit a second insolvency bankruptcy:

Pay Off All Credit Cards Each Month: After receiving a bankruptcy discharge, you could be bombarded with credit card offers. To rebuild your credit, you need to show that you could repay your debts, but the last thing you’ve to do is build up credit card debts that are revolving. If you do get a credit card, be sure to pay it off monthly. Having a high credit card debt is a typical cause of bankruptcy.

Do not buy home above your means: Most bankruptcy is due to the inability to pay a house mortgage. When you’ve been through a bankruptcy, don’t overextend yourself with a home that’s too pricey for your budget. Finding an inexpensive house can be challenging, but consider a house beyond your desired geographic location. A number of those areas are just as pleasant, but maybe not as popular, which suggests they’re more affordable.

Have an Emergency Fund. Attempt to maintain an emergency fund which will cover 3 to 6 months of your expenses.

Create a Budget and Stick to it to get control of your spending and lessen your costs, you’ve to know where the money goes. Consider consolidating debt at a rate that is lower, especially for credit card debt and student loans. If you’re not able to make a spending budget on one’s own, consider seeking professional help.

Rethink Your Income: If you’re in trouble financially, then consider a second job. A lot of people turn to income supplements like Uber or even Etsy to add a little bit of additional income each month.

Contact an Experienced Bankruptcy Attorney

If you are not sure if bankruptcy is the precise choice for you, whether it is your first bankruptcy or not, contact the attorney at Bankruptcy Law Center Today. We will help you better understand your options and come up with a plan to assist get back on your feet financially.

Read More:- Cost of Bankruptcy Lawyer in Florida

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