One of the biggest problems post-bankruptcy debtors face is recreating the debt troubles after bankruptcy that put them into bankruptcy in the first place. In previous posts, we've talked briefly about how post-bankruptcy debtors can avoid the debt trap; but what happens when despite their best efforts, debtors end up in debt again after their bankruptcy discharge? Despite the rules about how soon you can file bankruptcy again, there are some things debtors can do when they find themselves in debt again after bankruptcy.
- Stop incurring more debt charges. If your post-bankruptcy debt problems are stemming from overusing credit cards or other unsecured credit, then immediately stop racking up more debt.
- If you have debts such as medical debts that were incurred after bankruptcy, take the time to talk to your medical provider BEFORE they send your account to collections. Most medical providers, such as hospitals do not report delinquent accounts to the credit bureaus; but collections agencies do. So to keep your credit report clean communicate with you medical provider immediately.
- Get health insurance now. If you are incurring post-bankruptcy medical debt, try to get health insurance as soon as possible. It won't fix the medical debt you have already incurred but it will help prevent or at least reduce the amount of future medical debt as you try to rebuild your finances after bankruptcy.
- If you have bought too much house and find yourself unable to pay your mortgage after bankruptcy, consider a short-sale or a mortgage modification to avoid foreclosure. There are several programs available now for homeowners looking to modify their mortgage and avoid bankruptcy.