How Soon Can I File Bankruptcy Again
In a Nutshell
Yous tin file more than ane defalcation in a lifetime. How many times depends on how long it'due south been since your concluding bankruptcy case and what blazon of bankruptcy you filed. Nosotros'll break it downwards for you.
Take you lot filed bankruptcy in the past but are faced with a financial state of affairs that you tin can't resolve despite your best efforts? If you're facing a possible wage garnishment due to unexpected medical bills, unpaid taxation debts, or any other blazon of debt you're no longer able to pay, you can enquire the court for bankruptcy protection a second fourth dimension.
Know that you're not alone. A 2006 paper on a found that 8% of bankruptcy filers terminate upwards filing bankruptcy once again. [ one ] The 2005 changes to the Bankruptcy Code, intended to reduce overall filings, have not had much of an impact on this number. [ ii ]
In this article, nosotros'll wait at just how many times someone tin file bankruptcy depending on the blazon of bankruptcy and the amount of time that has passed since the first case. We'll also take a look at what other debt-relief options are bachelor if filing bankruptcy is not an option and whether a bankruptcy attorney can assistance y'all file a 2nd bankruptcy sooner.
Bankruptcy is a legal fashion for individuals who can no longer beget to pay their debts to become permanent debt relief through a defalcation discharge. The Bankruptcy Code provides for three types of consumer bankruptcies known as Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy.
Different Types of Bankruptcy Explained
A Chapter 7 bankruptcy eliminates most debt, including credit menu 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 keep all of your property as long as the monthly repayment plan pays for the value of your avails. The debts that don't get paid every bit role of the repayment plan are discharged once the plan has been completed. The belch of your debts gives you the fresh offset you need.
The Chapter 11 bankruptcy procedure provides similar relief to that provided in Chapter vii and Chapter 13, merely is generally reserved for filers with businesses or meaning assets and is a lot more expensive than fifty-fifty a Chapter 13 bankruptcy. This article will focus specifically on Chapter 7 and Chapter thirteen bankruptcy.
How it works
There is no limit to how many times someone tin can seek defalcation protection. To foreclose an abuse of the bankruptcy process, the Bankruptcy Code requires a certain amount of time to pass between cases that result in a discharge. This prevents people from running up high credit card balances and other types of debt and filing defalcation every few years.
What are the Time Limits
The type of bankruptcy filed in the previous case determines the time limit betwixt cases. The fourth dimension starts to run on the date the prior case is filed with the bankruptcy court. The date the discharge was entered doesn't affair.
Chapter vii bankruptcy ➡️ Affiliate 7 bankruptcy: 8 years
This is the longest amount of time betwixt cases required by the Bankruptcy Code. Chapter 7 provides the quickest form of debt relief through a defalcation filing and doesn't crave the filer to complete a repayment plan before getting their bankruptcy discharge.
Chapter 7 bankruptcy ➡️ Chapter 13 defalcation: 4 years
It is possible to file Chapter 13 bankruptcy shortly after receiving a Chapter 7 discharge, the filer just won't exist eligible to receive a Affiliate xiii belch in the second case. And then, someone who successfully discharges their unsecured debts through Chapter vii can file a Affiliate thirteen defalcation to pay off tax debts or other types of debt that survived the prior case.
Chapter 13 bankruptcy ➡️ Chapter 7 bankruptcy: 6 years
This waiting period can be waived if you paid back 100% to your unsecured creditors in your Chapter thirteen plan (or in some cases where you paid dorsum 70% of your total debts) and the original case was found to exist in good faith. Plus, since a Chapter thirteen repayment plan can take upwardly to v years to complete earlier resulting in a discharge, it's possible to file Chapter 7 defalcation well-nigh ane year afterward receiving a Chapter 13 discharge.
Chapter 13 bankruptcy ➡️ Chapter 13 bankruptcy: 2 years
If you previously filed a Chapter xiii case and received a belch and are looking to file a Affiliate 13 instance again, y'all have to await at least two years from the filing appointment of the first case before filing the second instance. This is pretty rare. The minimum length of a Affiliate thirteen repayment program is iii years. Receiving a belch before completing a three twelvemonth programme is possible just if an unexpected hardship makes completing the programme impossible.
Repeat Chapter xiii defalcation filings are sometimes used to go along the payments on the filer's student loans or tax debts manageable. Since these types of debts tin can't be discharged, the time limit between cases is less of import.
Can a bankruptcy attorney aid me file bankruptcy sooner?
A bankruptcy attorney can't help y'all get around the time limits, simply they may be able to help y'all file a different blazon of defalcation than the one y'all filed before and ostend the primeval date your 2d example can be filed. This is especially true if you filed a Chapter vii bankruptcy but didn't go a discharge. Simply a bankruptcy lawyer tin give you legal advice about how soon your second defalcation can be filed. They can besides help you 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 bankruptcy filings and unable to file another bankruptcy, yous may have to consider other debt-relief options like debt consolidation or debt settlement. These alternatives can be tricky to navigate, and so start by getting a free evaluation of your financial situation through credit counseling. Also, remember that most law firms treatment bankruptcy matters offer gratis consultations.
Let'southward Summarize...
In brusque, you lot can file more than ane bankruptcy in a lifetime. How many times depends on how long information technology'southward been since your last bankruptcy case. If you previously filed a Chapter vii defalcation and want to file Chapter 7 again, the time period is viii years from when you last filed. If y'all filed Chapter 7 and want to file a Affiliate 13, the time period is iv years from when yous filed Affiliate 7. If you filed a Chapter xiii and want to file some other Chapter 13, the time flow is two years from when y'all last filed. And, if y'all filed a Chapter 13 and want to file a Chapter 7 the time period is six years from when you filed.
If yous're eligible to file Chapter 7 bankruptcy, but tin can't beget to hire a defalcation attorney, Upsolve's gratis tool can help you gear up your defalcation forms and consummate the defalcation procedure on your ain.
Sources:
- American Bankruptcy Plant. ( 2006 ). Bankruptcy Repeat Filings. Law Review, 14(1), 169-200 .
- Miller, Michelle 1000. & Miller, L. ( 2008, June ). Echo Filers Nether the BAPCPA: A Legal and Economic Assay. Norton Annual Survey of Defalcation Police, p. 509, 2008 . Retrieved August 4, 2020, from https://ssrn.com/abstruse=1983377
Source: https://upsolve.org/learn/how-often-can-you-file-bankruptcy/
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