The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

How To Avoid a Second Bankruptcy

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Bankruptcy
Reading Time: 3 mins read
second bankruptcy AskTheMoneyCoach
8
SHARES
130
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Q:  I filed for bankruptcy in 2003. I really don’t want to file again, but I need to get rid of this debt. Where do I start?

A: To dig out of debt, start by admitting that you have a serious problem managing your finances. You acknowledge having filed bankruptcy nearly seven years ago, and now you are back in the same situation – deep in debt, and considering bankruptcy as one of your alternatives.

No Matter What the Situation – You Must Get to the Root of It

I don’t have to tell you that you shouldn’t go back down that road (i.e. filing bankruptcy again). You already know it. No matter what the reason you got back into debt this time – even if it was because of something out of your control – like big medical bills, divorce or the loss of a job – because of your past, you would have been wise to build up a cash cushion and take other steps to safeguard your finances so you’d never slip into debt again. However, you’ve clearly not done this.

I don’t mean to lecture you — especially since I’ve had more than my own share of debt. But I do want you to recognize that until you can conquer the reason that you keep falling into debt, you’ll be doomed to repeat this vicious cycle again and again.

Do You Lack Basic Financial Education? That Can Be Easily Fixed

Are you simply a poor money manager because no one has ever taught you the basics? Like how to balance a checkbook, how to manage debt wisely, and when (and when not to) borrow money or use credit? If you feel you lack basic financial literacy, then your next step is to be proactive about educating yourself in the areas where you are deficient. Read magazines or personal finance books. Take a free budgeting course at local community college or online. Or simply ask for advice from a mentor or someone around you who is successfully managing their finances.

Are You a Chronic Over-Spender? If So: Why?

For many people, though, staying out of debt isn’t really about a lack of education. Many of us know that we shouldn’t go out and run up the credit cards – yet that is exactly what we do. Many people deep in debt are not just poor money managers; they are chronic over-spenders. For these individuals, staying out of debt is often about changing your mindset.

You have to get comfortable with the fact that you can live without credit – and life will be just fine! Yes, you will have to take fewer trips and vacations. Yes, you will likely spend less time – and less money – at the mall. And yes, you will have to put an end to trying to “keep up with the Joneses.” If you can wrap your head around doing that, and put an end to the over-spending, every facet of your life will be enriched – not just your bank account.

Use Zero Debt as a Road Map

My book, Zero Debt: The Ultimate Guide to Financial Freedom, discusses how I got into and out of $100,000 in credit card debt. It offers specific “how-to” steps for those struggling with credit card bills. Read that book as a roadmap to debt-free living.

But again, there’s a difference between “book learning” and putting something into practice. Zero Debt can point you in the right direction. It can give you valuable, practical, tried-and-true steps to eliminate debt. But only you can implement that advice and put it into effect in real life – hopefully, for the rest of your life.

Tags: bankruptcy
Previous Post

I Have Over $5,000 in Delinquent Hospital Bills. How Can I Pay It Off?

Next Post

My Credit Score is 610. Can I Refinance into a Fixed Rate Loan with My Score?

Related Posts

50 cent

Rapper 50 Cent and Bankruptcy: Myth Vs. Fact in This Money & Media Mirage

by Lynnette Khalfani-Cox, The Money Coach

Social media and the mainstream press have been buzzing recently about rapper 50 Cent and his Chapter 11 bankruptcy filing. If you’ve read any of the news coverage, or followed the stream of mostly snarky comments on Twitter or Facebook, you might be inclined to believe any of the following...

Video: How Your Bankruptcy Will Impact Your Future Spouse’s Credit

by Lynnette Khalfani-Cox, The Money Coach

A subscriber to AskTheMoneyCoach.com is getting married, but recently filed for bankruptcy. The person wants to know how her bankruptcy will impact her future spouse's credit report. According to recent data from the American Bankruptcy Institute, there were 1.2 million personal bankruptcy filings in the United States in 2012. If it’s...

5 Things to Do Before You Go Into Foreclosure

by Lynnette Khalfani-Cox, The Money Coach

 If you’re having trouble keeping up with your mortgage payments and think you might be headed for foreclosure, there are still some things you can do to ameliorate the situation. Millions of U.S. homeowners have had their properties repossessed in recent years, so if you’re on the verge of losing...

AskTheMoneyCoach.com bankruptcy

Can I Change My Mind After Paying for a Bankruptcy Filing?

by Lynnette Khalfani-Cox, The Money Coach

Sometimes, people who intend to file for bankruptcy protection have a change of heart once it’s done, or once they pay to have a bankruptcy initiated. According to a bankruptcy attorney, different procedures apply once the bankruptcy has been filed with a court, as opposed to when you have only...

bankruptcy

5 Reasons People File for Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach

 According to recent data from the American Bankruptcy Institute, there were 1.2 million personal bankruptcy filings in the United States in 2012. If it’s increasingly difficult for you to cover all your bills, you find yourself using credit cards to pay for basic necessities, or you’re currently considering any type of debt...

cost to file for bankruptcy AskTheMoneyCoach.com

How Much Does it Cost to File for Bankruptcy Protection?

by Lynnette Khalfani-Cox, The Money Coach

 Approximately 1.2 million Americans filed for bankruptcy in 2012 and more than 1 million more individuals are expected to go bankrupt in 2013. Continued layoffs, foreclosures, rising healthcare costs and mounting credit-card debts are all still taking a toll on many people. If you’ve thought about filing for Chapter 7...

truth bankruptcy AskTheMoneyCoach.com

The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach

Bankruptcy isn't a step that should be taken lightly. But sometimes, it's a necessity that simply can't be avoided. If you're overwhelmed by enormous credit card debts you can never repay, struggling with massive medical bills, or are barely staying afloat due to unemployment, bankruptcy may be a good alternative...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1378 shares
    Share 551 Tweet 345
  • What to Do if Your Spouse Stole Money From You

    1166 shares
    Share 466 Tweet 292
  • What to Do If You Can’t Afford to Leave Your Spouse

    1104 shares
    Share 442 Tweet 276
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1011 shares
    Share 404 Tweet 253
  • What Do All Those Strange Codes In My Credit Report Mean?

    815 shares
    Share 326 Tweet 204
  • Do This Now If Your Wages Were Not Reported

    745 shares
    Share 298 Tweet 186
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    724 shares
    Share 290 Tweet 181

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist