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What Happens if You Incur Debt after Your Missouri or Illinois Bankruptcy Filing?

Generally speaking, it is not a good idea to incur debt after filing your Missouri or Illinois bankruptcy. Still, some feel that they need to do so to continue to live a normal life—and that could very well be true. So, what rules must you follow if you want to take on additional debt during a Missouri or Illinois bankruptcy?

In a Chapter 13 Missouri or Illinois bankruptcy, you must have court permission to incur debt or sell any property at any point in time during the life of your case. One purpose of this restriction relates to something I discussed in my Chapter 13 bankruptcy rules series. The court wants to make sure that you are able to afford what it is you are trying to do without threatening the outcome of your case. The court is looking out for your fresh start. This issue comes up pretty often in a Chapter 13 Missouri or Illinois bankruptcy simply because the life of a Chapter 13 spans a period of years, and let’s face it, life happens during that time.

Now, once you have completed your Chapter 13 bankruptcy, there is no more court restriction to worry about. However, this is the prime time for you to make rules for yourself. You see, a St. Louis bankruptcy attorney will help you get the fresh start that you need, but it is up to you to make the best of it. If you are immediately incurring debt after your case, you may quickly find yourself in need of credit card debt help, protection from foreclosure, and relief from harassing creditors. Sounds too familiar, right? Getting right back into debt after getting out of it may put you and your family in the danger zone.

What is so dangerous? You can easily find yourself needing to file bankruptcy again, but this time your options may be limited. How will you protect your family from the devastating effects of debt?

Bankruptcy isn’t just an excuse to get back into debt. Rather, bankruptcy gives you the opportunity to make smart, responsible decisions when given your fresh start. Your St. Louis bankruptcy attorney will hold up his end of the deal, but you too must do your part.

Wondering what else bankruptcy can mean for you and your family? Get a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

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