When Can I Declare Bankruptcy Again?
In a Nutshell
You tin can file more than i bankruptcy in a lifetime. How many times depends on how long information technology's been since your concluding defalcation case and what blazon of bankruptcy you filed. We'll break it down for you.
Have yous filed bankruptcy in the by but are faced with a financial situation that you lot 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 you're no longer able to pay, yous tin can ask the courtroom for bankruptcy protection a second time.
Know that you're non alone. A 2006 newspaper on a constitute that eight% of bankruptcy filers finish upwardly filing bankruptcy again. [ 1 ] The 2005 changes to the Defalcation Lawmaking, intended to reduce overall filings, have not had much of an impact on this number. [ 2 ]
In this article, nosotros'll await at but how many times someone can file bankruptcy depending on the blazon of bankruptcy and the amount of fourth dimension that has passed since the first case. We'll also take a await at what other debt-relief options are bachelor if filing bankruptcy is not an option and whether a bankruptcy attorney can help you file a second defalcation sooner.
Defalcation is a legal way for individuals who tin can no longer afford to pay their debts to become permanent debt relief through a bankruptcy belch. The Bankruptcy Lawmaking provides for iii types of consumer bankruptcies known equally Chapter 7 bankruptcy, Chapter xi bankruptcy, and Chapter 13 bankruptcy.
Unlike Types of Bankruptcy Explained
A Chapter seven bankruptcy eliminates most debt, including credit card debt, without requiring repayment of whatsoever kind. Instead of a repayment programme, the Affiliate 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 bankruptcy allows you to continue all of your property as long as the monthly repayment plan pays for the value of your assets. The debts that don't get paid equally part of the repayment program are discharged in one case the plan has been completed. The discharge of your debts gives y'all the fresh start you need.
The Affiliate 11 defalcation process provides similar relief to that provided in Affiliate 7 and Chapter 13, but is mostly reserved for filers with businesses or meaning avails and is a lot more expensive than even a Chapter 13 bankruptcy. This commodity will focus specifically on Chapter 7 and Affiliate 13 bankruptcy.
How it works
At that place is no limit to how many times someone can seek defalcation protection. To prevent an corruption of the bankruptcy process, the Bankruptcy Code requires a certain amount of time to pass between cases that effect in a discharge. This prevents people from running upwards loftier credit card balances and other types of debt and filing bankruptcy every few years.
What are the Time Limits
The type of defalcation filed in the previous instance determines the time limit between cases. The time starts to run on the engagement the prior example is filed with the defalcation court. The engagement the discharge was entered doesn't matter.
Affiliate 7 bankruptcy ➡️ Affiliate 7 bankruptcy: eight years
This is the longest amount of time between cases required by the Defalcation Code. Chapter vii provides the quickest form of debt relief through a defalcation filing and doesn't require the filer to consummate a repayment plan before getting their bankruptcy discharge.
Chapter 7 bankruptcy ➡️ Chapter 13 bankruptcy: four years
It is possible to file Affiliate xiii bankruptcy shortly after receiving a Affiliate 7 discharge, the filer just won't exist eligible to receive a Chapter xiii belch in the second case. So, someone who successfully discharges their unsecured debts through Affiliate 7 can file a Affiliate thirteen bankruptcy to pay off tax debts or other types of debt that survived the prior case.
Affiliate 13 bankruptcy ➡️ Chapter 7 bankruptcy: 6 years
This waiting period tin exist waived if you paid dorsum 100% to your unsecured creditors in your Chapter 13 plan (or in some cases where y'all paid back seventy% of your full debts) and the original case was constitute to be in good faith. Plus, since a Chapter 13 repayment program can have up to 5 years to consummate before resulting in a discharge, it's possible to file Chapter 7 bankruptcy about ane yr after receiving a Chapter 13 belch.
Chapter 13 bankruptcy ➡️ Affiliate 13 bankruptcy: ii years
If yous previously filed a Affiliate 13 instance and received a discharge and are looking to file a Chapter xiii case once again, you have to wait at least two years from the filing date of the first case before filing the second case. This is pretty rare. The minimum length of a Chapter 13 repayment plan is 3 years. Receiving a discharge before completing a three year plan is possible only if an unexpected hardship makes completing the program impossible.
Repeat Chapter 13 defalcation filings are sometimes used to proceed the payments on the filer's pupil loans or tax debts manageable. Since these types of debts can't be discharged, the fourth dimension limit betwixt cases is less important.
Can a defalcation chaser help me file bankruptcy sooner?
A bankruptcy attorney can't help you get around the time limits, but they may be able to assist you file a different type of bankruptcy than the one you filed earlier and confirm the earliest date your 2nd example tin can be filed. This is peculiarly true if you filed a Affiliate 7 bankruptcy simply didn't get a discharge. Only a bankruptcy lawyer can requite y'all legal advice well-nigh how soon your second bankruptcy can exist filed. They can also help y'all become a courtroom social club to make certain your automatic stay doesn't expire before your discharge is entered.
Do I have other debt-relief options?
If you are in betwixt bankruptcy filings and unable to file some other bankruptcy, yous may have to consider other debt-relief options like debt consolidation or debt settlement. These alternatives can be tricky to navigate, and then start by getting a free evaluation of your financial situation through credit counseling. Also, remember that most law firms treatment bankruptcy matters offer free consultations.
Let's Summarize...
In short, you can file more than one bankruptcy in a lifetime. How many times depends on how long it'southward been since your final defalcation case. If you previously filed a Affiliate seven bankruptcy and want to file Affiliate 7 over again, the time period is viii years from when y'all last filed. If yous filed Affiliate 7 and desire to file a Chapter 13, the time period is 4 years from when you filed Chapter 7. If you filed a Chapter 13 and desire to file another Chapter thirteen, the time period is two years from when you last filed. And, if you lot filed a Chapter 13 and want to file a Chapter 7 the time catamenia is vi years from when you filed.
If you're eligible to file Chapter vii bankruptcy, merely tin can't afford to rent a defalcation chaser, Upsolve'south free tool tin aid you prepare your defalcation forms and complete the bankruptcy procedure on your own.
Sources:
- American Bankruptcy Institute. ( 2006 ). Defalcation Repeat Filings. Law Review, 14(1), 169-200 .
- Miller, Michelle M. & Miller, 50. ( 2008, June ). Repeat Filers Under the BAPCPA: A Legal and Economic Assay. Norton Annual Survey of Bankruptcy Law, 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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