What Are the Limitations on Filing Bankruptcy More Than Once?
Sometimes people need to consider bankruptcy more than one time in their lives and people should be aware of the restrictions the law places on filing for bankruptcy multiple times.
August 01, 2012
People often choose to file bankruptcy because they encounter a crisis in their lives, such as an unexpected job loss or medical bills, that destabilizes them financially. They seek bankruptcy protection in order to get a fresh start and regain their financial footing. Sometimes people need to consider bankruptcy more than one time in their lives and people should be aware of the restrictions the law places on filing for bankruptcymultiple times.Chapter 7 Bankruptcy Filing Limits
Those who successfully filed Chapter 7 bankruptcy and received a debt discharge need to wait eight years before they may file Chapter 7 bankruptcy again. The court calculates the eight years according to the date the first petition was filed, not when the filer received the discharge.
If a person has previously filed Chapter 13 bankruptcy and wishes to file Chapter 7, he or she needs to wait six years from the filing date of the Chapter 13 petition before filing. If a person would like to file for Chapter 7 before six years have passed, the court will grant the discharge in the Chapter 7 case only if the filer paid his or her unsecured creditors at least 70 percent of what he or she owed them under the Chapter 13 repayment plan.
Chapter 13 Bankruptcy Filing Limits
Those who received a debt discharge under Chapter 13 bankruptcy need to wait two years from the filing date of their first petitions before filing Chapter 13 again in order to receive a full discharge. If a person has previously filed Chapter 7 bankruptcy, he or she need not wait any specified time before filing Chapter 13 bankruptcy.
However, if a person files for Chapter 13 bankruptcy before four years have passed from the filing date of a Chapter 7 bankruptcy, his or her unsecured debts will not be discharged under Chapter 13. People sometimes file Chapter 13 bankruptcy after having filed Chapter 7 as a means of saving secured debts, however, by staving off foreclosure and working out a repayment plan. They also use Chapter 13 as a way to obtain repayment plans for debts that cannot be discharged in bankruptcy, such as tax debt, child support and alimony.
Consult an Attorney
A previous bankruptcy impacts a person's future bankruptcy filings. If you are considering filing bankruptcy and have already done so in the past, it is vital to seek the assistance of a qualified bankruptcy attorney who can discuss your history and inform you of the best plan for moving forward.
Article provided by Kratter & Gustafson, LLC
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