How Long File Again Chapter 7

April 05, 2022 Post a Comment

In a Nutshell

You tin can file more than one bankruptcy in a lifetime. How many times depends on how long information technology's been since your concluding bankruptcy case and what type of bankruptcy you lot filed. Nosotros'll break it downward for you lot.

Take you filed bankruptcy in the past but are faced with a financial situation that you can't resolve despite your best efforts? If you're facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or whatever other type of debt you're no longer able to pay, yous tin can ask the courtroom for bankruptcy protection a second time.

Know that you're not alone. A 2006 newspaper on a plant that viii% of defalcation filers end up filing bankruptcy again. ^{[ i ]} The 2005 changes to the Bankruptcy Code, intended to reduce overall filings, have non had much of an bear on on this number. ^{[ 2 ]}

In this article, we'll expect at just how many times someone tin file bankruptcy depending on the type of bankruptcy and the corporeality of time that has passed since the first instance. We'll also accept a expect at what other debt-relief options are available if filing bankruptcy is not an option and whether a bankruptcy attorney can help you file a 2d bankruptcy sooner.

Defalcation is a legal way for individuals who can no longer afford to pay their debts to get permanent debt relief through a defalcation discharge. The Defalcation Code provides for three types of consumer bankruptcies known equally Chapter 7 bankruptcy, Affiliate 11 defalcation, and Chapter 13 bankruptcy.

Different Types of Bankruptcy Explained

A Chapter seven bankruptcy eliminates most debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment program, the Chapter 7 defalcation process liquidates your non-exempt assets to partially repay your debts. A Chapter thirteen bankruptcy allows yous to proceed all of your property every bit long as the monthly repayment plan pays for the value of your avails. The debts that don't become paid equally part of the repayment plan are discharged one time the program has been completed. The discharge of your debts gives you lot the fresh start you need.

The Chapter 11 bankruptcy procedure provides similar relief to that provided in Chapter seven and Chapter 13, but is generally reserved for filers with businesses or significant avails and is a lot more than expensive than even a Chapter xiii defalcation. This article will focus specifically on Chapter seven and Affiliate 13 bankruptcy.

How information technology works

There is no limit to how many times someone can seek bankruptcy protection. To prevent an abuse of the bankruptcy process, the Bankruptcy Lawmaking requires a certain corporeality of time to laissez passer betwixt cases that result in a discharge. This prevents people from running up high credit carte du jour balances and other types of debt and filing bankruptcy every few years.

What are the Time Limits

The type of bankruptcy filed in the previous example determines the fourth dimension limit between cases. The time starts to run on the date the prior case is filed with the bankruptcy court. The date the belch was entered doesn't matter.

Chapter 7 bankruptcy ➡️ Affiliate 7 defalcation: eight years

This is the longest corporeality of time betwixt cases required by the Bankruptcy Code. Chapter 7 provides the quickest form of debt relief through a defalcation filing and doesn't require the filer to complete a repayment plan before getting their bankruptcy discharge.

Chapter 7 bankruptcy ➡️ Chapter 13 bankruptcy: 4 years

Information technology is possible to file Chapter 13 bankruptcy soon afterwards receiving a Chapter 7 discharge, the filer but won't exist eligible to receive a Chapter thirteen discharge in the 2nd case. Then, someone who successfully discharges their unsecured debts through Chapter seven tin file a Chapter 13 defalcation to pay off taxation debts or other types of debt that survived the prior case.

Affiliate xiii bankruptcy ➡️ Chapter 7 bankruptcy: half-dozen years

This waiting menstruation tin be waived if you paid back 100% to your unsecured creditors in your Chapter thirteen plan (or in some cases where you paid dorsum 70% of your total debts) and the original case was found to be in good faith. Plus, since a Chapter 13 repayment plan can take up to 5 years to complete before resulting in a discharge, it's possible to file Chapter seven bankruptcy about ane year after receiving a Chapter thirteen belch.

Chapter 13 defalcation ➡️ Chapter xiii defalcation: 2 years

If you previously filed a Chapter 13 example and received a discharge and are looking to file a Chapter 13 case again, you have to await at least two years from the filing date of the outset case before filing the second case. This is pretty rare. The minimum length of a Chapter 13 repayment program is 3 years. Receiving a discharge before completing a 3 year plan is possible merely if an unexpected hardship makes completing the plan impossible.

Repeat Chapter 13 bankruptcy filings are sometimes used to keep the payments on the filer'southward pupil loans or taxation debts manageable. Since these types of debts tin't be discharged, the time limit between cases is less important.

Can a bankruptcy attorney help me file defalcation sooner?

A bankruptcy attorney tin't assistance you get around the time limits, simply they may exist able to help you file a unlike type of bankruptcy than the one you lot filed before and confirm the earliest date your 2d case tin can be filed. This is especially true if you filed a Chapter vii bankruptcy but didn't get a discharge. Merely a bankruptcy lawyer can give yous legal communication nearly how soon your second bankruptcy can be filed. They can also assistance yous go a court guild to make sure your automatic stay doesn't elapse before your discharge is entered.

Practice I take other debt-relief options?

If yous are in between defalcation filings and unable to file another defalcation, you may have to consider other debt-relief options like debt consolidation or debt settlement. These alternatives can be tricky to navigate, and so kickoff past getting a free evaluation of your fiscal state of affairs through credit counseling. Also, retrieve that most law firms handling bankruptcy matters offer costless consultations.

Let's Summarize...

In short, yous can file more than one defalcation in a lifetime. How many times depends on how long it'south been since your concluding bankruptcy case. If you previously filed a Affiliate 7 defalcation and desire to file Chapter 7 once more, the time flow is 8 years from when you last filed. If you filed Chapter 7 and want to file a Chapter 13, the fourth dimension catamenia is 4 years from when you lot filed Affiliate 7. If y'all filed a Chapter xiii and desire to file another Chapter thirteen, the fourth dimension period is two years from when you terminal filed. And, if you filed a Chapter 13 and want to file a Affiliate 7 the time period is six years from when you filed.

If you're eligible to file Chapter vii bankruptcy, merely tin't afford to hire a bankruptcy attorney, Upsolve'southward costless tool tin can help yous set up your defalcation forms and complete the defalcation process on your own.

Person at desk getting information organized.

Sources:

American Bankruptcy Institute. ( 2006 ). Bankruptcy Repeat Filings. Law Review, 14(i), 169-200 .
Miller, Michelle G. & Miller, L. ( 2008, June ). Repeat Filers Under the BAPCPA: A Legal and Economic Analysis. Norton Almanac Survey of Defalcation Police force, p. 509, 2008 . Retrieved August 4, 2020, from https://ssrn.com/abstract=1983377