Chapter 7 How Soon to File Again
In a Nutshell
Yous can file more than than one bankruptcy in a lifetime. How many times depends on how long it'south been since your last bankruptcy case and what blazon of bankruptcy you filed. We'll break it down for you.
Accept yous filed bankruptcy in the by only are faced with a financial situation that you can't resolve despite your best efforts? If yous'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, you can ask the court for defalcation protection a second fourth dimension.
Know that you're not alone. A 2006 paper on a found that eight% of bankruptcy filers end upwards filing bankruptcy over again. [ i ] The 2005 changes to the Bankruptcy Lawmaking, intended to reduce overall filings, have non had much of an impact on this number. [ two ]
In this commodity, we'll look at but how many times someone can file bankruptcy depending on the type of bankruptcy and the amount of time that has passed since the get-go instance. Nosotros'll also take a look at what other debt-relief options are bachelor if filing defalcation is not an option and whether a defalcation attorney tin help you file a second bankruptcy sooner.
Bankruptcy is a legal fashion for individuals who can no longer afford to pay their debts to go permanent debt relief through a defalcation discharge. The Bankruptcy Lawmaking provides for iii types of consumer bankruptcies known equally Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter xiii bankruptcy.
Different Types of Bankruptcy Explained
A Affiliate vii bankruptcy eliminates nigh debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter 7 defalcation process liquidates your non-exempt assets to partially repay your debts. A Chapter thirteen bankruptcy allows you lot to go on all of your property equally long as the monthly repayment program pays for the value of your assets. The debts that don't become paid equally function of the repayment plan are discharged once the program has been completed. The belch of your debts gives you lot the fresh start you need.
The Chapter xi bankruptcy procedure provides similar relief to that provided in Chapter 7 and Affiliate thirteen, but is mostly reserved for filers with businesses or significant assets and is a lot more than expensive than even a Chapter 13 bankruptcy. This commodity will focus specifically on Affiliate 7 and Affiliate 13 bankruptcy.
How it works
At that place is no limit to how many times someone can seek bankruptcy protection. To prevent an abuse of the defalcation process, the Bankruptcy Code requires a certain amount of time to pass between cases that effect in a belch. This prevents people from running up high credit menu 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 case determines the time 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 affair.
Affiliate 7 bankruptcy ➡️ Chapter seven bankruptcy: viii years
This is the longest amount of fourth dimension between cases required by the Bankruptcy Code. Chapter 7 provides the quickest class of debt relief through a bankruptcy filing and doesn't crave the filer to complete a repayment program before getting their bankruptcy discharge.
Chapter 7 defalcation ➡️ Chapter 13 bankruptcy: iv years
It is possible to file Chapter thirteen bankruptcy soon after receiving a Chapter 7 belch, the filer just won't be eligible to receive a Affiliate 13 belch in the second case. So, someone who successfully discharges their unsecured debts through Affiliate 7 tin can 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: six years
This waiting period tin be waived if you paid back 100% to your unsecured creditors in your Chapter 13 plan (or in some cases where you paid back 70% of your total debts) and the original case was establish to be in good faith. Plus, since a Affiliate xiii repayment program can take up to 5 years to consummate before resulting in a discharge, it'southward possible to file Chapter 7 bankruptcy virtually one year afterwards receiving a Chapter thirteen discharge.
Chapter 13 bankruptcy ➡️ Affiliate xiii bankruptcy: 2 years
If y'all previously filed a Chapter 13 case and received a discharge and are looking to file a Chapter thirteen case again, you lot have to look at least two years from the filing appointment of the get-go example earlier filing the second case. This is pretty rare. The minimum length of a Affiliate 13 repayment plan 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 Affiliate 13 bankruptcy filings are sometimes used to keep the payments on the filer'southward student loans or tax debts manageable. Since these types of debts can't exist discharged, the time limit between cases is less of import.
Can a defalcation chaser help me file defalcation sooner?
A defalcation attorney can't aid you get effectually the time limits, but they may be able to aid yous file a different type of bankruptcy than the one you filed before and confirm the primeval engagement your 2d example tin be filed. This is particularly true if you filed a Affiliate 7 bankruptcy but didn't get a belch. Only a defalcation lawyer tin give you legal communication about how soon your second bankruptcy can exist filed. They can besides help you get a court order to make sure your automated stay doesn't expire before your belch is entered.
Practice I have other debt-relief options?
If you are in between bankruptcy filings and unable to file another bankruptcy, y'all may have to consider other debt-relief options like debt consolidation or debt settlement. These alternatives tin be tricky to navigate, so start by getting a free evaluation of your financial situation through credit counseling. Also, remember that most constabulary firms treatment bankruptcy matters offer free consultations.
Let's Summarize...
In brusk, you can file more than than one bankruptcy in a lifetime. How many times depends on how long it's been since your concluding bankruptcy case. If you previously filed a Chapter seven bankruptcy and want to file Affiliate 7 again, the time menstruation is 8 years from when you last filed. If you filed Chapter 7 and want to file a Chapter thirteen, the time period is 4 years from when you filed Chapter vii. If yous filed a Chapter thirteen and desire to file some other Chapter 13, the time menstruum is two years from when you last filed. And, if y'all filed a Chapter thirteen and want to file a Chapter 7 the fourth dimension period is vi years from when y'all filed.
If you lot're eligible to file Chapter 7 bankruptcy, but tin't afford to hire a bankruptcy chaser, Upsolve's free tool can assist yous prepare your bankruptcy forms and complete the bankruptcy process on your own.
Sources:
- American Defalcation Establish. ( 2006 ). Bankruptcy Repeat Filings. Law Review, xiv(1), 169-200 .
- Miller, Michelle M. & Miller, L. ( 2008, June ). Echo Filers Under the BAPCPA: A Legal and Economic Assay. Norton Annual Survey of Bankruptcy Law, p. 509, 2008 . Retrieved Baronial 4, 2020, from https://ssrn.com/abstruse=1983377
Source: https://upsolve.org/learn/how-often-can-you-file-bankruptcy/
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