After A Chapter 13 Bankruptcy Discharge
The rules are a little different in this scenario because the amount you paid in the last filing will influence your ability to obtain a full discharge if you file Chapter 7 bankruptcy earlier than the time limit of 6 years. If you paid at least 70% of the amount owed the last time you declared, you can file early and still get the debts dismissed. Otherwise, the exception does not apply and youll have to take responsibility. Only 2 years must pass if youre going to file Chapter 13 again with the intention of dismissing liability for debts.
Keep in mind that even though you could potentially file multiple times, bankruptcy should be used as a last resort rather than a method of excusing debt every few years. If youve been faced with declaring more than once, it is advisable to seek debt counseling to prevent putting yourself in such a dire financial situation again. For more information please fill out our contact form or call 267-343-5818.
Time Limits Apply To Discharges Not Bankruptcy Filings
Bankruptcy law doesn’t set a minimum period that you must wait before filing for bankruptcy a second time. However, there’s a catch. If you file too soon after wiping out debt in a previous case, you won’t be eligible for another debt discharge .
Although there are times that it makes sense to file for bankruptcy even though you won’t receive a discharge, these situations are rare . Because a bankruptcy filed too soon will end up being a waste of time and money in most cases, it’s essential to know how to time your bankruptcy filing.
Debts That Are Difficult To Discharge In Bankruptcy
Student loans are notoriously difficult to discharge through bankruptcy; it is only possible if you can demonstrate undue hardship to yourself or your dependents, such as being unable to maintain a minimal standard of living. In some cases, a court may discharge part, but not all, of your student loan debt. If student loan debt is a major reason for your considering bankruptcy, contact your loan servicer first and see if itâs possible to negotiate a repayment plan that would work for you. In the case of federal student loans, for example, several repayment plans are available.
You cannot have income tax debts discharged without a special exemption, which can only be obtained by petitioning the bankruptcy court and explaining why you deserve relief. So if you have income tax debts that you cannot repay, then you may be better off consulting with a tax attorney to discuss your options before filing for bankruptcy.
In the case of federal taxes, for example, the Internal Revenue Service can offer several alternatives to people who are unable to pay what they owe. One is an offer in compromise, in which the IRS agrees to accept a lesser amount. The IRS may also arrange for a payment plan, or an installment agreement, that will allow you to pay your taxes over an extended period of time.
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Chapter 13 Followed By A Chapter 1:
If you have filed a Chapter 13 and received a discharge, you have to wait at least two years to file Chapter 13 Bankruptcy Again and receive a discharge.
Most cases take between three and five years, so practically, you can immediately file a new Bankruptcy under Chapter 13 as soon as you obtain a discharge in such cases.
Can I Keep My Car If I Convert Chapter 13 To Chapter 7
Sometimes, conversion to Chapter 7 is necessary because you can t keep up with the payments required under your Chapter 13 plan, but conversion may be possible regardless of your reason. Depending on your situation, you may keep your house and car under Chapter 7, though generally the payment must be current.
Receiving Another Bankruptcy Discharge
You’ll qualify for another discharge if you meet the waiting period rules. Here’s how it works.
Chapter 7 to Chapter 7. If you received a Chapter 7 discharge previously, eight years must elapse between the old and new filing dates.
Chapter 13 to Chapter 13. Two years must elapse between the two filing dates to receive a discharge in Chapter 13. Because a Chapter 13 repayment plan usually takes three to five years to complete, you’ll likely be eligible for a second discharge after finishing the first case.
Chapter 7 to Chapter 13. Four years must elapse between the Chapter 7 and Chapter 13 filing dates. Chapter 13 has its benefits even if you don’t receive a discharge, however. For instance, you can pay off priority debts, such as newly-incurred taxes or domestic support arrearages. Or, you can catch up on missed mortgage or vehicle loan payments and keep a house or car. Filing for Chapter 13 immediately after receiving a Chapter 7 discharge is commonly referred to as a Chapter 20 bankruptcy.
Chapter 13 to Chapter 7. If you received a Chapter 13 discharge and you’d like to receive a Chapter 7 discharge, you’ll have to wait six years between filing dates. But there is an exception to this rule. The six-year rule won’t apply if, in the previous Chapter 13, you paid back:
- all of your unsecured debts, or
- at least 70% of your unsecured debts in a plan proposed in good faith and implemented through your best efforts.
How Long Between Bankruptcy Filings
Theres a good chance that you can file for bankruptcy after having already gone through one. How soon depends on what kind of case you filed earlier and what youre planning on filing this time.
It also depends on whether the earlier case resulted in discharge. A;bankruptcy discharge;releases the debtor from personal liability of any debts included within a bankruptcy case. If the previous case was dismissed without a discharge, you could file again right away, subject to restrictions. A bankruptcy dismissal occurs when a judge or trustee closes your case before it is complete.
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How Soon After Bankruptcy Can I Get A Credit Card
Being discharged from bankruptcy generally marks the end of your bankruptcy procedure.;However, your bankruptcy stays on your credit record for six or seven years from the date of your discharge . This will affect your ability to get loans and other kinds of credit in the future.
However, once you are discharged you can apply for a credit card immediately. Whether you will be given a credit card, and the type of card is dependent on the financial institutions policies. Generally, it will take one to two years before you can get an unsecured credit card. In the meantime, there are other options.
What If You Didn’t Receive A Discharge In The First Case
In most situations, you can file again and receive a discharge in the second bankruptcy if you didn’t receive one in the first matter. But that’s not always the case. Also, you lose the full benefits of the automatic staythe order that stops creditors from collectingwhen you file multiple bankruptcies in quick succession.
The court dismissed the first case
- Unless the court orders otherwise, you can file again. A 180-day waiting period may apply if you failed to obey a court order or appear in the case, or you voluntarily dismissed the case after a creditor filed a motion for relief from the bankruptcy stay.
The court denied your discharge
- You might be able to file again, but you probably won’t be entitled to a discharge of the debts listed in your first case. This is another unusual circumstance wherein you would be wise to seek the advice of an experienced bankruptcy lawyer.
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Complaints Seeking Revocation Of Discharge Will Require Retaining Counsel
Keep in mind that the mere filing of an adversary proceeding ;seeking to revoke the discharge will require hiring an attorney to answer the allegations of improper conduct. If these allegations are not addressed in a timely fashion, the debtor will lose their discharge by default.
The possibility that a bankruptcy discharge can be revoked highlights the importance of;full disclosure to your bankruptcy attorney. You must inform your bankruptcy attorney of;all assets and debts in order to ensure that your discharge is not subsequently challenged.
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Time Limitations For Multiple Bankruptcies
Although most people assume thatfiling for bankruptcy will take care of their debt-related issues once and for all, some may find themselves in financial turmoil later on down the road. Under these circumstances, it may be necessary to circle back to the idea of filing for bankruptcy yet again.
Although federal law would not prohibit you from filing a second time, it is important to understand that it does place limitations on how often the court can grant a discharge of debt. For this reason, it may be necessary to wait a certain period of time before undergoing this process an additional time.
Have questions about filing for bankruptcy twice? Reach out to our Wichita bankruptcy attorney at 836-3617 orfill out our online contact form now.
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Stop A Foreclosure Repossession Or Eviction
The automatic stay will stop these actions as long as they’re still pending. Once complete, bankruptcy won’t help.
- Evictions. An eviction that’s still in the litigation process will come to a halt after a bankruptcy filing. But the stay will likely be temporary. Keep in mind that if your landlord already has an eviction judgment against you, bankruptcy won’t help in the majority of states. Learn more about evictions and the automatic stay.
- Foreclosure and repossession. Although the automatic stay will stop a foreclosure or repossession, filing for Chapter 7 won’t help you keep the property. If you can’t bring the account current, you’ll lose the house or car once the stay lifts. By contrast, Chapter 13 has a mechanism that will allow you to catch up on past payments so you can keep the asset. Find out more about bankruptcy’s automatic stay and foreclosure and car repossession and bankruptcy.
Two Cases Pending Within 12 Months
If you had two cases pending within the previous 12 months, you might be allowed to file a third case, but the automatic stay will not go into effect at all unless you ask the court to impose it.
To determine if you deserve the automatic stay, the court will look at several factors including:
- The number of cases you filed
- Whether your cases were dismissed because of non-payment, error , failure to file the required paperwork, or failure to cooperate with the trustee
- Whether you dismissed your case after a creditor filed a motion for relief from the automatic stay
- Whether your circumstances have changed since your previous case was dismissed
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Here Is What You Should Know When File For Bankruptcy Twice
When you File for Bankruptcy for the first time and receive a discharge, then you have to wait for a specified period before you can receive a discharge again.
If your case was dismissed without entry of a discharge, you can file another bankruptcy but there may be limitations placed on the filing, especially if your case was dismissed within the year preceding your second filing.
For example, if you have had a case dismissed within the last year, the automatic stay only remains in effect in your second filing for one month, unless you get this extended by Order of the Court.
If you have had two cases dismissed within the year preceding a third filing, the automatic stay does not go into effect at all at the beginning of the case, and you have to seek approval from the Court to impose the automatic stay, or in other words put it into effect.
This is important because the automatic stay prevents creditors from taking action against you such as a garnishment, foreclosure or repossession. Normally this stay goes into effect automatically when a bankruptcy is filed, hence the name.
However, if the automatic stay does not go into effect or expires because of a prior bankruptcy dismissal, your bankruptcy will not prevent such creditor action.
With respect to discharge eligibility, you can file for Bankruptcy twice or even three times and get a discharge every time, provided you remain patient and wait for a certain period before filing again.
Chapter 7 Followed By A Chapter :
You are free to file a Second Bankruptcy under Chapter 7 even if you received a discharge in your previous case. If you wait long enough, you are also entitled to receive a discharge again.
After you have received a discharge in your first Bankruptcy Filing Under Chapter 7, you have to wait for eight years before you file for Bankruptcy again under the same Chapter.
For example, if you file for Bankruptcy Under Chapter 7 on May 8, 2019, then you will be eligible for a discharge if you file a second Bankruptcy after May 8, 2027.
Filing prior to that the date would make you ineligible to get a discharge and you will be legally responsible for clearing your debts.
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How Can I Get A Copy Of My Credit Record
There are two ways to get your credit report : either through the mail or via the internet. If you want to obtain your credit report for free, you must use the mail. It is also important to do what you can to make sure your credit report shows a history of reliable credit repayments, and as few unfavorable repayment incidents as possible.
For more detailed information related to credit reporting, visit Equifax Canada or Trans Union website. Talk to a licensed trustee today. We have trustees everywhere from Calgary to Montreal and more. Get a free consultation today!
Alternatives To Chapter 7
Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.
In addition, individual debtors who have regular income may seek an adjustment of debts under chapter 13 of the Bankruptcy Code. A particular advantage of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to “catch up” past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. §;707.
Debtors should also be aware that out-of-court agreements with creditors or debt counseling services may provide an alternative to a bankruptcy filing.
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Filing Again With Bankruptcy Discharge
Different time limits and waiting periods apply to filing a second bankruptcy after your first filing was discharged successfully. The time frame is based on whether you first filed Chapter 7 or 13, and whether you plan to file Chapter 7 or 13 the second time.
The timing on the waiting period is based on the date you filed, not the date of discharge.
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Filing Bankruptcy Cases Under Different Chapters;
If youre filing under a different chapter the second time around, the following rules apply:;
- Chapter 7 after Chapter 13 According to Title 11 Section §727 of the U.S. Code, if your first filing was under Chapter 13, you will not be granted a discharge under a Chapter 7 until at least six years has passed from the date you filed your Chapter 13.
- Chapter 13 after Chapter 7 According to Title 11 Section §1328; of the U.S. Code, if your first case was a Chapter 7, you only have to wait four years before filing a Chapter 13.;
Filing for Bankruptcy for Reasons other than Discharge;
Keep in mind that the time limits discussed only pertain to discharges, not to filings. There is no limit to amount of times you can actually file. While seeking a discharge of debts is the most common reason to file for bankruptcy, its not the only reason.
Some file for the automatic stay which prevents creditors from collecting on debts. Depending on your circumstances, this could help you stop collection efforts and catch up on your payments.;
Running into Difficulties with Repeat Bankruptcy Filings;
There may be no legal limit on how many times you can file for bankruptcy in Texas but the courts will take a good look at why the debtor is filing for a subsequent bankruptcy. First, lets review why bankruptcies were written into American law.
Discuss Your Options with a Bankruptcy Attorney;
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