Why you should consider financial counseling after receiving your bankruptcy discharge by

Quick question – do you know how many people that have filed for bankruptcy want to file again? 

I have yet to meet anyone who wants to refile.  Some need to, but rarely do people genuinely want to file for bankruptcy a second (or third) time.  Why? Filing for bankruptcy was a tough decision to begin with.  It is an emotional and challenging ordeal. 

People file for bankruptcy because they want a fresh start.  The bankruptcy discharge helps.  But depending on the debtor’s particular case, they may still have some lingering debts that still need to be repaid, like:

• Student loans,
• IRS tax debt,
• Car loans and other reaffirmed secured debts. 

And while bankruptcy can help with the debt, rarely does it help with the behaviors and choices (good or bad) that led to the debt.  Those need to be addressed head on.

Bankruptcy should be a one-time event.  It should be a door you pass through on your journey to financial serenity.  Bankruptcy is great at addressing the debt.  But it does not address the heart attitude towards money.  Financial counseling does. 

Coupling bankruptcy with financial counseling should give you a greater chance of winning with your personal finances.  Consider meeting with a financial counselor once you receive your discharge to devise:

1. A workable budget,
2. A plan to eliminate any outstanding debts, and
3. A means to establish a fund for emergencies or opportunities.

If you are serious about not wanting to have to file for bankruptcy again, then you should seriously consider meeting with a financial counselor.