When Can I File Chapter 7 Bankruptcy Again
In a Nutshell
You can file more one bankruptcy in a lifetime. How many times depends on how long it's been since your final defalcation example and what type of bankruptcy yous filed. We'll interruption information technology down for you lot.
Have you lot filed bankruptcy in the past simply are faced with a financial state of affairs that yous can't resolve despite your best efforts? If you're facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or any other type of debt you're no longer able to pay, y'all tin can inquire the court for bankruptcy protection a second time.
Know that you're not alone. A 2006 paper on a found that eight% of bankruptcy filers finish upwards filing defalcation once more. [ 1 ] The 2005 changes to the Defalcation Code, intended to reduce overall filings, accept not had much of an impact on this number. [ 2 ]
In this article, we'll look at just how many times someone can file bankruptcy depending on the type of bankruptcy and the corporeality of time that has passed since the first instance. We'll besides have a look at what other debt-relief options are available if filing bankruptcy is not an choice and whether a bankruptcy attorney can help you lot file a 2d bankruptcy sooner.
Bankruptcy is a legal way for individuals who tin no longer beget to pay their debts to get permanent debt relief through a defalcation discharge. The Bankruptcy Code provides for three types of consumer bankruptcies known every bit Chapter 7 defalcation, Chapter eleven defalcation, and Chapter xiii bankruptcy.
Different Types of Bankruptcy Explained
A Chapter 7 bankruptcy eliminates most debt, including credit carte debt, without requiring repayment of whatever kind. Instead of a repayment programme, the Chapter 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 bankruptcy allows you lot to keep all of your property as long equally the monthly repayment plan pays for the value of your assets. The debts that don't get paid as part of the repayment plan are discharged in one case the plan has been completed. The belch of your debts gives y'all the fresh start you need.
The Chapter 11 defalcation process provides similar relief to that provided in Chapter 7 and Chapter 13, but is generally reserved for filers with businesses or meaning assets and is a lot more expensive than even a Chapter 13 bankruptcy. This article will focus specifically on Chapter 7 and Chapter 13 bankruptcy.
How information technology works
At that place is no limit to how many times someone can seek bankruptcy protection. To preclude an abuse of the bankruptcy process, the Bankruptcy Code requires a certain corporeality of time to pass between cases that result in a discharge. This prevents people from running up loftier credit card balances and other types of debt and filing bankruptcy every few years.
What are the Time Limits
The blazon of defalcation filed in the previous case determines the time limit between cases. The time starts to run on the date the prior example is filed with the bankruptcy court. The appointment the belch was entered doesn't affair.
Chapter vii defalcation ➡️ Chapter 7 bankruptcy: eight years
This is the longest amount of time betwixt cases required by the Defalcation Lawmaking. Chapter 7 provides the quickest form of debt relief through a bankruptcy filing and doesn't crave the filer to complete a repayment programme before getting their bankruptcy discharge.
Chapter seven defalcation ➡️ Chapter xiii bankruptcy: 4 years
It is possible to file Affiliate 13 defalcation soon after receiving a Chapter seven discharge, the filer just won't be eligible to receive a Chapter xiii belch in the second case. And then, someone who successfully discharges their unsecured debts through Affiliate 7 can file a Affiliate 13 bankruptcy to pay off revenue enhancement debts or other types of debt that survived the prior case.
Affiliate 13 defalcation ➡️ Chapter vii defalcation: 6 years
This waiting period can be waived if you paid back 100% to your unsecured creditors in your Chapter 13 plan (or in some cases where you lot paid back lxx% of your full debts) and the original case was found to be in good faith. Plus, since a Affiliate 13 repayment programme can take upwards to 5 years to complete before resulting in a discharge, it's possible to file Chapter 7 defalcation about 1 year after receiving a Chapter xiii discharge.
Chapter 13 bankruptcy ➡️ Affiliate 13 bankruptcy: 2 years
If yous previously filed a Chapter xiii example and received a discharge and are looking to file a Chapter 13 case again, you have to expect at least two years from the filing date of the kickoff case earlier filing the second case. This is pretty rare. The minimum length of a Chapter 13 repayment plan is three years. Receiving a discharge earlier completing a three year plan is possible only if an unexpected hardship makes completing the plan incommunicable.
Echo Affiliate 13 bankruptcy filings are sometimes used to proceed the payments on the filer's student loans or tax debts manageable. Since these types of debts tin't exist discharged, the time limit between cases is less important.
Can a defalcation attorney help me file bankruptcy sooner?
A bankruptcy chaser can't help you become around the time limits, but they may be able to assist you lot file a different type of bankruptcy than the one you filed before and ostend the earliest engagement your second case can be filed. This is especially truthful if you filed a Chapter 7 bankruptcy simply didn't get a discharge. Only a bankruptcy lawyer can give you lot legal advice about how soon your second bankruptcy can be filed. They can also aid y'all get a court order to make sure your automatic stay doesn't elapse before your discharge is entered.
Practice I take other debt-relief options?
If y'all are in betwixt bankruptcy filings and unable to file some other bankruptcy, you lot may take to consider other debt-relief options like debt consolidation or debt settlement. These alternatives can be tricky to navigate, so start by getting a gratuitous evaluation of your financial situation through credit counseling. Besides, call up that most law firms handling bankruptcy matters offer free consultations.
Permit'south Summarize...
In short, you lot tin file more ane defalcation in a lifetime. How many times depends on how long it'southward been since your last defalcation case. If you lot previously filed a Chapter 7 bankruptcy and want to file Chapter 7 again, the time period is 8 years from when you lot concluding filed. If y'all filed Chapter 7 and want to file a Chapter 13, the time menses is four years from when you lot filed Affiliate 7. If you filed a Chapter thirteen and desire to file another Chapter 13, the fourth dimension menstruum is ii years from when you lot last filed. And, if y'all filed a Chapter 13 and want to file a Chapter vii the time period is six years from when y'all filed.
If yous're eligible to file Chapter 7 bankruptcy, but tin't afford to rent a defalcation attorney, Upsolve'southward gratis tool can help y'all set your defalcation forms and complete the bankruptcy process on your own.
Sources:
- American Bankruptcy Constitute. ( 2006 ). Bankruptcy Repeat Filings. Police force Review, 14(ane), 169-200 .
- Miller, Michelle M. & Miller, L. ( 2008, June ). Repeat Filers Under the BAPCPA: A Legal and Economic Analysis. Norton Almanac Survey of Defalcation Law, p. 509, 2008 . Retrieved Baronial four, 2020, from https://ssrn.com/abstruse=1983377
Source: https://upsolve.org/learn/how-often-can-you-file-bankruptcy/
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