Chapter 7 May 2014 When Can I File Again
In a Nutshell
You lot can file more than i bankruptcy in a lifetime. How many times depends on how long information technology'south been since your final defalcation instance and what type of defalcation you filed. Nosotros'll break it downwards for you.
Take you filed bankruptcy in the past only are faced with a fiscal state of affairs that you can't resolve despite your all-time efforts? If y'all're facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or whatever other blazon of debt you're no longer able to pay, you lot tin can ask the court for bankruptcy protection a second fourth dimension.
Know that you're not alone. A 2006 newspaper on a found that 8% of bankruptcy filers stop upwards filing bankruptcy again. [ one ] The 2005 changes to the Bankruptcy Code, intended to reduce overall filings, have not had much of an affect on this number. [ 2 ]
In this article, we'll look at only how many times someone can file bankruptcy depending on the type of bankruptcy and the amount of time that has passed since the first case. Nosotros'll also take a await 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 defalcation sooner.
Bankruptcy is a legal way for individuals who tin no longer beget to pay their debts to get permanent debt relief through a bankruptcy belch. The Bankruptcy Code provides for iii types of consumer bankruptcies known as Affiliate 7 bankruptcy, Chapter 11 defalcation, and Affiliate thirteen bankruptcy.
Different Types of Bankruptcy Explained
A Chapter 7 bankruptcy eliminates nigh debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment plan, the Affiliate 7 bankruptcy process liquidates your non-exempt avails to partially repay your debts. A Affiliate 13 defalcation allows you to proceed all of your property every bit long every bit the monthly repayment program pays for the value of your assets. The debts that don't get paid as role of the repayment plan are discharged once the plan has been completed. The discharge of your debts gives you the fresh start you demand.
The Chapter 11 defalcation procedure provides similar relief to that provided in Chapter 7 and Chapter 13, but is by and large reserved for filers with businesses or pregnant assets and is a lot more expensive than even a Chapter xiii bankruptcy. This article volition focus specifically on Chapter 7 and Chapter 13 bankruptcy.
How it works
There is no limit to how many times someone tin can seek defalcation protection. To prevent an abuse of the defalcation process, the Defalcation Code requires a certain corporeality of time to laissez passer between cases that result in a discharge. This prevents people from running up loftier credit menu balances and other types of debt and filing defalcation every few years.
What are the Time Limits
The blazon of bankruptcy filed in the previous example determines the time limit between cases. The time starts to run on the date the prior case is filed with the defalcation court. The engagement the belch was entered doesn't matter.
Affiliate 7 bankruptcy ➡️ Affiliate 7 bankruptcy: 8 years
This is the longest amount of time between cases required by the Defalcation Lawmaking. Affiliate 7 provides the quickest course of debt relief through a bankruptcy filing and doesn't require the filer to consummate a repayment plan before getting their bankruptcy discharge.
Chapter seven bankruptcy ➡️ Chapter 13 bankruptcy: four years
It is possible to file Chapter 13 defalcation soon afterwards receiving a Affiliate vii discharge, the filer just won't exist eligible to receive a Chapter 13 belch in the second instance. So, someone who successfully discharges their unsecured debts through Chapter seven can file a Chapter 13 bankruptcy to pay off tax debts or other types of debt that survived the prior example.
Affiliate thirteen bankruptcy ➡️ Chapter seven bankruptcy: 6 years
This waiting menstruation tin can be waived if y'all paid back 100% to your unsecured creditors in your Chapter thirteen plan (or in some cases where you paid back 70% of your full debts) and the original case was plant to be in adept faith. Plus, since a Chapter 13 repayment plan can take upwardly to 5 years to complete before resulting in a discharge, it'due south possible to file Affiliate 7 bankruptcy about i twelvemonth afterwards receiving a Affiliate 13 discharge.
Chapter xiii bankruptcy ➡️ Chapter 13 bankruptcy: 2 years
If yous previously filed a Chapter 13 instance and received a belch and are looking to file a Chapter 13 case once again, you have to wait at least two years from the filing date of the first instance before filing the second instance. This is pretty rare. The minimum length of a Chapter xiii repayment plan is 3 years. Receiving a discharge before completing a 3 twelvemonth program is possible only if an unexpected hardship makes completing the plan impossible.
Repeat Affiliate 13 defalcation filings are sometimes used to keep the payments on the filer's student loans or tax debts manageable. Since these types of debts can't be discharged, the time limit between cases is less of import.
Can a bankruptcy attorney help me file bankruptcy sooner?
A bankruptcy chaser can't help you get around the time limits, but they may be able to assist you file a dissimilar type of bankruptcy than the 1 yous filed before and confirm the earliest date your second example can be filed. This is especially truthful if you filed a Affiliate vii bankruptcy but didn't get a belch. Merely a bankruptcy lawyer can give you legal advice virtually how soon your 2d defalcation can be filed. They can as well help yous get a court order to make sure your automatic stay doesn't expire before your discharge is entered.
Do I have other debt-relief options?
If you are in between defalcation filings and unable to file another bankruptcy, you lot may have to consider other debt-relief options similar debt consolidation or debt settlement. These alternatives can exist tricky to navigate, and then start by getting a free evaluation of your financial situation through credit counseling. Also, think that nigh police force firms handling bankruptcy matters offering free consultations.
Allow's Summarize...
In brusque, you tin file more than than 1 bankruptcy in a lifetime. How many times depends on how long it's been since your last bankruptcy case. If you previously filed a Chapter 7 bankruptcy and want to file Affiliate 7 again, the time flow is 8 years from when you final filed. If yous filed Chapter 7 and want to file a Chapter 13, the time flow is four years from when you filed Affiliate 7. If you lot filed a Chapter thirteen and desire to file another Chapter thirteen, the fourth dimension period is two years from when you final filed. And, if y'all filed a Chapter xiii and want to file a Chapter vii the time period is half-dozen years from when yous filed.
If y'all're eligible to file Affiliate 7 defalcation, but tin't afford to hire a bankruptcy attorney, Upsolve's free tool tin help you prepare your defalcation forms and complete the defalcation process on your own.
Sources:
- American Defalcation Institute. ( 2006 ). Bankruptcy Repeat Filings. Police force Review, 14(i), 169-200 .
- Miller, Michelle M. & Miller, L. ( 2008, June ). Echo Filers Under the BAPCPA: A Legal and Economic Analysis. Norton Annual Survey of Defalcation Police force, p. 509, 2008 . Retrieved August iv, 2020, from https://ssrn.com/abstruse=1983377
Source: https://upsolve.org/learn/how-often-can-you-file-bankruptcy/