You might not know this, but sometimes people file a Chapter 7 bankruptcy more than once in their life. For example, many people encounter new hardships after bankruptcy. They may lose their job or suffer a severe injury that leads to expensive medical bills.
In the U.S., you may file bankruptcy multiple times, but most people try to avoid more than one filing. You cannot always prevent emergencies that impact you economically, but limiting new debt improves your financial situation. It can also help you avoid repeat Chapter 7 bankruptcy filings.
Tips for success
Prudence is beneficial in many situations, including when you want to minimize new debt. When you adopt a prudent approach to incurring new debt, it can significantly improve your overall financial circumstances. You might not want to avoid debt altogether when rebuilding your credit, but minimizing debt is always wise. Here are some tips:
- Avoid falling prey to “deals” that allow you to buy now and pay later, as they only postpone new debt.
- Set strict spending limits or make a budget and stick to your plan.
- If you must get a loan, look for the lowest interest rate.
- Keep careful track of your bank balances to prevent overdraft charges.
- Pay more than the minimum when paying down your debt.
- Leave your cards at home and only take the cash you know you need when shopping for household items.
- Compare prices before making purchases, especially on big-ticket items like furniture and appliances.
If you suffer financially devastating circumstances that you cannot overcome, don’t be so embarrassed that you rule out filing another bankruptcy. After all, the Georgia bankruptcy system exists to ensure that Americans can find a way to overcome situations beyond their control.