What Was The Outcome Of Your Prior Bankruptcy
How soon you can file for bankruptcy again depends largely on the outcome of your prior bankruptcy case. If your debts were discharged and the court closed your case, nothing changes. You must wait two to eight years depending on the bankruptcy chapter you filed before and plan to file now.
If, on the other hand, your debts were not discharged and the court dismissed your case, different rules apply. If the bankruptcy court dismisses your case with prejudice, you may be prohibited from filing another bankruptcy for 180 days. A case is dismissed with prejudice when court orders are not followed or the bankruptcy rules are abused.
Bankruptcy fraud, such as not disclosing assets, lying, or acting in bad faith, has harsher consequences. The bankruptcy court could ban you from filing for bankruptcy for a long time or for life. If this happens, you would be unable to have your debts discharged indefinitely.
A courts dismissal of your bankruptcy case could also cut short the term of your automatic stay. A dismissal that occurred within one year of filing bankruptcy can result in an automatic stay of just 30 days. Even more dismissals within one year of filing can strip you of any automatic stay at all.
Working With A Bankruptcy Attorney
Facing debt can be overwhelming. The bills can continue to pile up and the creditors can continue to harass you unless you take responsibility and take action. Working with a bankruptcy attorney to guide you through the process of debt consolidation and/or bankruptcy is the first step to getting back on to solid financial footing. The laws regarding bankruptcy can also be confusing. Because of this, its highly advised that you work with a bankruptcy attorney such as the ones at Resnilk Hayes Moradi that can walk you through the process and clarify any questions or concerns you might have. There can be a lot of questions during this extremely stressful time and we are happy to help you plan how to move forward with a solid financial future.
What Is Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a way to reorganize your debt. It involves repaying none, some or all of your debt over the course of three to five years. One important difference between Chapter 13 and Chapter 7 bankruptcy is that in Chapter 13, your debts arent discharged and youre still liable to pay them.
With Chapter 13, most or all of your creditors are lumped together into one large pool. You then make payments each month to a lawyer called a trustee whos assigned to your case. The trustee distributes your payment to the creditors.
In Chapter 13, you can reduce the amount owed on secured loans, reduce interest rates, re-amortize loans for a lower monthly payment, remove certain liens, extend the time to pay back taxes, reduce the amount owed on unsecured loans sometimes down to zero and legally break leases, says bankruptcy attorney Dai Rosenblum of Butler, Pa. Because a Chapter 13 filing can extend up to five years, Rosenblum says many people use it to catch up on their mortgage.
When you proceed with a Chapter 13 case, you must file a plan detailing how some, or all, of the debts will be repaid over time. In addition, you or your attorney, in conjunction with the trustee for your case, will determine a reasonable amount that you can afford to pay back to creditors. That amount is based on your assets, monthly income and monthly expenses.
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Filing Chapter 13 After A Chapter 13 Discharge: 2 Years
If you had a Chapter 13 bankruptcy discharge and are looking to file again, you must wait two years from the previous filing date.
While this is the shortest time allowed between any two filings, it is also the rarest sequence because a Chapter 13 restructuring typically takes three or five years to repay. But a Chapter 13 can sometimes be discharged early due to additional extreme hardship.
Will Filing For The Second Time Help Or Harm My Financial Situation
Filing bankruptcy has its effect on your credit score, even though your debts will be forgiven. For instance, Chapter 7 stays on your credit report for ten years. And this can significantly affect your ability to qualify for loans or rent certain homes.
However, there are times when fling for the second time is the best option. Sometimes you dont need forgiveness over your debts you just need time to make payments.
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What If My Bankruptcy Was Dismissed With Prejudice
If you did not obey court orders or you abused the bankruptcy system, your case can be dismissed with prejudice. While this does not mean you can never file again, it does mean the court can impose temporary restrictions on when you can file, such as placing a 180-day restriction on when you can file. Once the restriction is lifted, you can file again.
In cases where you committed bankruptcy fraud, the court may impose more than 180 days or permanently deny you the ability to file.
Our Jacksonville & Gainesville Bankruptcy Attorneys Explain
Can you file more than once? The short answer is yes. These are referred to as an area as “repeat filings” or “multiple discharges.” There are only a few rules that will prevent you from simply filing another bankruptcy case, but there is a catch. You might beable to file a new bankruptcy case only to discover that the second bankruptcy doesn’t do you much good.
The goal of most bankruptcy cases is to get a “discharge” of some or all the debt obligations. There are other legitimate goals, of course, like stopping a foreclosure or stripping a second mortgage lien, but the most common goal of filing a bankruptcy is to obtain a discharge. That’s where the rules about multiple bankruptcies kick in. If you don’t wait long enough between bankruptcy cases, you may discover that you are not eligible for a discharge in your new case. Timing is everything in repeat bankruptcy filings.
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Negatively Affects Credit Score
Bankruptcy Can Damage Your Credit for 10 Years or MoreFiling for bankruptcy of any kind is going to damage your credit. However, the good news is that your bad credit rating will not be permanent. Chapter 7 bankruptcy can be reported on your credit report for up to 10 years. However, note that during a chapter 7 procedure debt can be removed quicker than planned depending on how quickly assets are sold.
Chapter 13 bankruptcy can be reported on your credit report for up to 7 years. However, since chapter 13 is paid back on a 3 or 5 year payment plan, then its possible for there to be a delay in when credit reporting occurs, delaying the effects to your credit report.
Bankruptcy Doesnt Solve All Problems
With Bankruptcy, Some Debt is Never Forgiven and Sacrifice is Required
Filing for bankruptcy will not solve every problem that you have. For example, bankruptcy doesnt mean that your debt will be forgiven or that you can return to spending money extravagantly. On the contrary, filing for bankruptcy requires sacrifice on your part to ensure that debt is paid as quickly as possible and that any extra expenses are postponed until later.
Can you file bankruptcy more than once and solve all your problems? The answer is no. Dealing with bankruptcy requires that you learn to budget and save, as well as control spending.
Should You File For Bankruptcy Again
However, time limits will apply to when and how often you may have your debts discharged in second and subsequent bankruptcies. Filing for bankruptcy too hastily after discharging debts in a previous bankruptcy can make you ineligible for a second debt discharge.
In other words, filing a second bankruptcy too quickly will probably not help you meet your goals, so its important to file at the right time. If youll keep reading, you will find out more about:
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Exceptions To The Waiting Period
If you did not receive a discharge in your first bankruptcy filing, you may be able to receive a discharge without waiting the full amount of time. For example:
If your case was dismissed, you will not have to wait the specified waiting period. However, you may have to wait 180 days if you voluntarily dismissed your claim for certain reasons or if the court dismissed the case because you failed to appear or comply with a court order.
If your discharge was denied, you may be able to file again but likely will not be eligible for a discharge of the specific debts that were denied a discharge in your first case.
In either situation, if you file again too quickly, the court may deny you the automatic stay in your second case. This automatic stay can provide important relief in a Chapter 13 case, especially if you are facing a possible repossession of your car, foreclosure of your house, wage garnishments, or other legal actions regarding your debts.
If Your Previous Bankruptcy Was A Chapter 7
If you previously filed Chapter 7 bankruptcy successfully, this means you may have had some of your assets liquidated to pay off delinquent debts. You also had debts included in your bankruptcy discharged.
If you are in a position where you are once again struggling to repay delinquent debts, you must wait at least eight years before you can file for Chapter 7 bankruptcy again. Keep in mind, however, that the eight years begins from the original date of filing and not the original date of the first Chapter 7 bankruptcy discharge.
You may, however, file a Chapter 13 bankruptcy and receive a discharge after a successful Chapter 7 case after waiting only four years.
Yesner notes that occasionally you can file a motion for Chapter 13 bankruptcy sooner than four years after a Chapter 7 bankruptcy and that this scenario is a lot more common than people think. Its so common, in fact, that attorneys have come up with a slang term to describe a Chapter 7 bankruptcy followed promptly by a Chapter 13 bankruptcy. This slang term, which is not really a type of bankruptcy at all, is called a Chapter 20. According to Yesner, some courts allow this type of case to proceed and others do not.
Yesner offered the following example to explain how he is helping a client in this exact situation:
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What Types Of Legal Issues Can Arise In A Bankruptcy
The following legal issues can commonly arise in connection with a bankruptcy proceeding:
- Not filing the correct documents. Many bankruptcy filers who dont hire an attorney to help them dont file all of the required bankruptcy documents. If this problem is not fixed, the court will dismiss the case.
- Failing to protect property. Property exemptions are allowed in both Chapter 7 and Chapter 13 bankruptcy cases. Those filing bankruptcy without an attorney will oftentimes not list the proper exemption to keep an item of property which can be protected like a home, or property you particularly care about like a family heirloom.
- Not taking the required credit counseling. As discussed in the previous section, credit counseling is required of all bankruptcy filers. If the completion certificate is not filed, the bankruptcy case can be dismissed by the court.
- Objections to discharge. While unsecured debt can typically be discharged in a chapter 7 case, that is not always the case. If a credit card company objects to the discharge of what has been termed binge debt a judge may order that the debtor still must repay some or all of the amount owed.
Can I File Bankruptcy More Than Once
One of the more common misconceptions about bankruptcy is that a person is only able to file one time and then will never be allowed to file again. This is not true. While there are certain restrictions with regard to how frequently you are able to receive a discharge under the same chapter, there is no statutory limit as to the number of times you can file bankruptcy.
I am New Jersey bankruptcy attorney Joel R. Spivack. I dedicate my entire practice to helping people seek debt relief through Chapter 7 and Chapter 13 filings. With more than 30 years of experience practicing exclusively in the area of bankruptcy law, I am in a strong position to help you find the solution you need to get back on the right financial path.
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The Time Between Chapter Filings
The exact amount of time between discharges depends on which type of bankruptcy you use for the first and second filing.
|Chapter 7||6 years from the first filing date*|
*There is an important exception to this rule that you should not. If you paid off all your unsecured debt in full or at least paid off 70 percent of the claims made on a plan entered into in good faith, then you can file for Chapter 7 sooner than this date.
Need help starting the filing process? Were here so you can get the fresh start you need.
Why Henderson Nv Residents Are Filing For Bankruptcy Protection In 2021
In these tough economic times, many people in Henderson and throughout Clark County, Nevada are having real struggles with their finances. These hardships likely are related to the Covid 19 pandemic. Therefore, when people are searching for answers, often a possible solution to their troubles is filing for bankruptcy.
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Can You File Bankruptcy More Than Once Learn More About Chapter 7 And 13 Bankruptcy What Leads To Bankruptcy And How To Prevent It
Your back is against the wall and youve decided to declare bankruptcy again. Perhaps you have seen examples of celebrities or even millionaires filing for bankruptcy. Yet, their life seems to be prosperous after filing bankruptcy.
You may not know that declaring bankruptcy is a serious event with lasting consequences. It can affect your credit negatively for years, preventing you from borrowing. It can also require a great deal of time to get to a final resolution.
Bankruptcy can be emotionally and physically exhausting. Losing assets and access to credit can be debilitating to small businesses and families. In addition, filing for bankruptcy can be disruptive to families and lead to breakups.
Learning more about the types of bankruptcy, what to expect during a bankruptcy and potential solutions to avoid bankruptcy can be empowering. In addition, well lay out some real methods that you can implement to prevent bankruptcy in the future.
Create A Budget: Why Budgeting Is Important
At some point in our lives, we all want to win. We want get ahead, to own a home and not worry about debt. We want to take control of our life. Budgeting is one of the critical steps that can help you take control of your life. In the process of taking control, we also prepare ourselves for better quality of life by having more money. Having more money means that you have more power to dictate the kind of life you want.
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Youre Our First Priorityevery Time
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Your First Bankruptcy Ended In A Chapter 13 Discharge
If you were offered a new repayment plan under Chapter 13 discharge, you have to wait two years before filing for another Chapter 13 bankruptcy case. This restriction is more lenient because you are showing a good faith effort to repay as much as you can.
If you want to file a new Chapter 7 bankruptcy case after receiving a Chapter 13 discharge, you must wait for six years before doing so. This time is also measured from the date you filed for the first Chapter 13 case. The only exception to this 6-year rule is if you paid 100% of your unsecured debt, or if you paid at least 70% of these unsecured debts and the court determines that you did your best.
The courts intention isnt to punish you for financial problems beyond your control but wants to reward you for doing your best in repaying your debts. Consult a Chapter 7 bankruptcy lawyer in Oklahoma just to make sure you are filing on a date that will permit a new discharge.
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How Often Can You File Bankruptcy
For most people, is a once in a lifetime event. Unfortunately, sometimes things happen and you may be finding yourself once again facing financial hardship and looking at the possibility of filing bankruptcy a second time. If so, you are not alone. Approximately 10% of bankruptcies are for individuals who, for one reason or another, needed to file bankruptcy more than once.