How Many Years Do I Have to Wait to File Chapter 7 Again

March 17, 2022 Post a Comment

In a Nutshell

You lot tin can file more than than 1 bankruptcy in a lifetime. How many times depends on how long it'south been since your concluding bankruptcy case and what type of bankruptcy you filed. We'll break information technology down for you.

Accept yous 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 revenue enhancement debts, or any other type of debt y'all're no longer able to pay, y'all can inquire the court for defalcation protection a second time.

Know that you're not solitary. A 2006 paper on a found that 8% of bankruptcy filers end upwardly filing bankruptcy again. ^{[ ane ]} The 2005 changes to the Defalcation Code, intended to reduce overall filings, have non had much of an touch on on this number. ^{[ ii ]}

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

Bankruptcy is a legal way for individuals who tin no longer beget to pay their debts to go permanent debt relief through a defalcation discharge. The Defalcation Lawmaking provides for three types of consumer bankruptcies known as Chapter 7 bankruptcy, Affiliate xi bankruptcy, and Chapter 13 bankruptcy.

Different Types of Defalcation Explained

A Chapter vii bankruptcy eliminates most debt, including credit bill of fare debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 bankruptcy allows you to proceed all of your holding equally long as the monthly repayment programme pays for the value of your assets. The debts that don't become paid every bit part of the repayment plan are discharged in one case the plan has been completed. The belch of your debts gives you the fresh start you need.

The Affiliate 11 defalcation process provides similar relief to that provided in Chapter 7 and Chapter 13, just is generally reserved for filers with businesses or meaning avails and is a lot more expensive than even a Affiliate 13 bankruptcy. This article volition focus specifically on Chapter 7 and Chapter 13 bankruptcy.

How information technology works

In that location is no limit to how many times someone can seek bankruptcy protection. To preclude an corruption of the bankruptcy process, the Bankruptcy Code requires a certain amount of time to pass betwixt cases that result in a belch. This prevents people from running up loftier credit card balances and other types of debt and filing bankruptcy every few years.

What are the Fourth dimension 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 matter.

Chapter vii bankruptcy ➡️ Chapter vii bankruptcy: 8 years

This is the longest corporeality of time between cases required past the Defalcation Code. Chapter 7 provides the quickest class of debt relief through a bankruptcy filing and doesn't require the filer to consummate a repayment plan before getting their defalcation discharge.

Chapter vii bankruptcy ➡️ Chapter xiii bankruptcy: 4 years

Information technology is possible to file Chapter thirteen bankruptcy shortly after receiving a Affiliate 7 discharge, the filer just won't exist eligible to receive a Chapter 13 belch in the second case. And then, someone who successfully discharges their unsecured debts through Chapter vii tin file a Chapter thirteen bankruptcy to pay off tax debts or other types of debt that survived the prior case.

Chapter 13 bankruptcy ➡️ Chapter seven defalcation: 6 years

This waiting catamenia can be waived if y'all paid dorsum 100% to your unsecured creditors in your Chapter 13 plan (or in some cases where you paid back lxx% of your full debts) and the original case was institute to be in good faith. Plus, since a Affiliate 13 repayment programme can take upwards to 5 years to complete earlier resulting in a discharge, it's possible to file Chapter seven bankruptcy about 1 twelvemonth after receiving a Affiliate 13 discharge.

Chapter 13 defalcation ➡️ Chapter thirteen defalcation: two years

If you previously filed a Affiliate 13 case and received a discharge and are looking to file a Affiliate xiii case again, you accept to wait at least two years from the filing appointment of the first case before filing the 2d case. This is pretty rare. The minimum length of a Chapter 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 incommunicable.

Repeat Chapter thirteen 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 fourth dimension limit between cases is less of import.

Can a bankruptcy attorney help me file bankruptcy sooner?

A defalcation attorney can't aid y'all get around the time limits, simply they may be able to assist you file a different type of bankruptcy than the one you filed before and confirm the earliest date your second case can exist filed. This is particularly true if you filed a Chapter 7 defalcation but didn't go a discharge. Only a defalcation lawyer can requite you legal advice nigh how presently your second bankruptcy can be filed. They can as well help y'all go a court order to make certain your automatic stay doesn't elapse before your discharge is entered.

Exercise I accept other debt-relief options?

If you are in between bankruptcy filings and unable to file another defalcation, you may accept to consider other debt-relief options like debt consolidation or debt settlement. These alternatives can be catchy to navigate, so start by getting a free evaluation of your financial state of affairs through credit counseling. Also, recall that almost police force firms handling bankruptcy matters offer gratuitous consultations.

Allow's Summarize...

In short, you can file more one bankruptcy in a lifetime. How many times depends on how long it's been since your last bankruptcy case. If you previously filed a Affiliate 7 defalcation and desire to file Chapter seven again, the time period is eight years from when you last filed. If yous filed Chapter vii and want to file a Chapter 13, the fourth dimension period is four years from when you filed Chapter 7. If you filed a Chapter 13 and want to file some other Affiliate thirteen, the time period is 2 years from when you last filed. And, if you filed a Chapter thirteen and want to file a Affiliate 7 the time period is 6 years from when y'all filed.

If you lot're eligible to file Chapter vii bankruptcy, but can't afford to hire a bankruptcy attorney, Upsolve's free tool can aid y'all prepare your bankruptcy forms and complete the bankruptcy process on your own.

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Sources:

American Bankruptcy Establish. ( 2006 ). Bankruptcy Repeat Filings. Law Review, fourteen(one), 169-200 .
Miller, Michelle One thousand. & Miller, L. ( 2008, June ). Repeat Filers Nether the BAPCPA: A Legal and Economical Analysis. Norton Annual Survey of Bankruptcy Law, p. 509, 2008 . Retrieved Baronial 4, 2020, from https://ssrn.com/abstract=1983377