How Long Do You Need To Wait Between Bankruptcies
While theres no law restricting how frequently you can file a bankruptcy, there are a few practical matters that can limit you.
First, if your filings are abusive or for the sole purpose of delaying or frustrating your creditors, a bankruptcy judge can stop you from filing. When this happens, a judge may dismiss your case with a one year bar, for example, restricting you from filing a bankruptcy petition within the next year.
Second, the bankruptcy code restricts how frequently you can obtain a bankruptcy discharge. In other words, the bankruptcy code restricts how often your debts can be forgiven. If you received a discharge in your first bankruptcy, then a set amount of time must pass before you can have your debts discharged by the courts again. So, while you can file for bankruptcy as many times as you need, you wont receive a second discharge until a certain amount of time has passed.
You may be wondering why you would want to file a bankruptcy if you cant have your debts forgiven, but there are many reasons you would do this. You may want to file for the purpose of establishing a payment plan, to repay mortgage arrears, or to catch up on missed car payments, for example.
Whether your eligible for a discharge in your second bankruptcy case depends on whether you received a discharge in the first case, what type of discharge you received, and what type of case youre filing. We discuss these rules below.
The following combinations are how long that wait is.
Chapter 13 To Chapter 7 Time Limit
The standard wait is six years, but its not chiseled in stone.
The waiting period is often waived if you repaid all your debts under Chapter 13 provision, or you repaid at least 70% of them and showed a good-faith effort to pay them all.
If you meet those requirements, you could file for Chapter 7 within a year of the Chapter 13 discharge.
Is Filing Bankruptcy Twice Bad
Filing multiple bankruptcies is certainly not ideal, lets put it that way. Anyone who got into such serious debt problems that bankruptcy was necessary once may have repeated the same mistakes and chose to file a second time.
However, there are times when a second filing is necessary, and important. Those who have worked out a plan and approach with their attorney, financial adviser or credit counselor may find bankruptcy the best option for dealing with a bad financial situation.
Its important to know the consequences of bankruptcy when considering whether you should file bankruptcy a second time. There will be ramifications on your credit score and credit report, but leaving debt unpaid also will hurt the financial status.
If the approach is well thought out, the second filing may turn out to be a good thing because it will allow for a fresh start and the ability to move forward from the crushing burden of debt.
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How A Kansas Bankruptcy Attorney Can Help
Making the decision to file for bankruptcy a second time can be difficult without the expert guidance of a legal professional, so you should not hesitate to consult the legal team atKansas Bankruptcy Center before moving forward.
Although this process could free you from overwhelming debt once again, it is important to understand that bankruptcy isn’t your only option.
Need to file for bankruptcy a second time? Callour team at 836-3617 orsubmit a complimentary case evaluation form online. Ourbankruptcy attorney in Wichita is prepared to help!
Can I Get New Credit After Filing Bankruptcy
To being with, if you are interested in filing bankruptcy in Florida, you must be a legal resident of the State of Florida. In addition, all Bankruptcy filings and documents are to be filed with the court within the county you legally reside. For instance, if you legally live in Coral Springs which is in Broward County, you cannot file for Bankruptcy in Miami-Dade County. Though if you recently moved, you may have to file at the court that serves your previous or old zip code.
In addition, if you have lived in Florida for at least 91 of the past 180 days , you can file for Bankruptcy within the State of Florida. If you have recently moved to Florida, you may have to file in the state from where you relocated.
As you can already tell regarding the bankruptcy rules about what state and what county you are eligible to file Bankruptcy in, the Bankruptcy laws can be a bit confusing.
This Is why I practice in the area of Bankruptcy Law and work with my clients to help them navigate the Bankruptcy rules and regulations. Filing Bankruptcy is rarely an easy decision. Often times recognizing you may have to file bankruptcy comes after many months, or even years, of stress, financial hardship, frustration and even at times, feeling depressed and overwhelmed.
Below is an overview on some of the frequently asked questions on Bankruptcy Laws and How To File Bankruptcy in Florida:
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Chapter 7 To Chapter 13
If you filed Chapter 7 the first time and are now looking to file Chapter 13, you need to wait 4 years from your original Chapter 7 filing date to file Chapter 13. Keep in mind, however, that the time limits are if you are hoping to receive a second discharge. You might decide to file a Chapter 13 after a previous Chapter 7 without the goal of discharge if you are now behind on a secured debt that you want to keep and need the plan to catch up on payments. This filing sequence is sometimes referred to as âChapter 20.â
If You’ve Filed For Bankruptcy Before You Must Wait A Number Of Years Before Wiping Out Debt In A New Case
Updated By Cara O’Neill, Attorney
If you’ve filed for bankruptcy before, you’ll have to meet certain requirements before you’ll be eligible to receive a debt dischargethe order that wipes out qualifying debt. In this article, you’ll learn how to:
- check whether enough time has elapsed to receive a debt discharge
- determine whether a court order will delay your filing further, and
- know when you’ll need to file a motion for an automatic stay orderthe order that protects you from creditor collections during the bankruptcy case.
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How Many Times Can You Claim Chapter 7
If you previously filed a Chapter 7 bankruptcy and want to file Chapter 7 again, the time period is eight years from when you last filed. If you filed Chapter 7 and want to file a Chapter 13, the time period is four years from when you filed Chapter 7.
What Is The Discharge Of Debt
The goal of bankruptcy is to give borrowers a fresh start. The new start is obtained by discharging the debt. The discharge is a court order releasing the borrower from personal liability on the debt. The discharge prohibits a creditor from taking any collection action against the borrower. See 11 U.S. 727. In most cases, obtaining a discharge will be the primary reason why a borrower files for Chapter 7 bankruptcy.
Borrowers should be cautious of objections to the discharge. Both the trustee and creditors can raise objections and prevent discharge. The objection can be to prevent the discharge of a specific debt or all of the debts. The most common objections raised involve acts by the borrower to hinder, delay, or defraud a creditor. Typical examples are hiding or undervaluing assets.
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Filing For A Second Bankruptcy In California
If you are filing for bankruptcy in California, you are not alone. At close to a quarter million annual petitions, California has more bankruptcy cases than any other state, and 97% of these are consumer filings. For most of these filers, bankruptcy will be a once-in-a-lifetime occurrence. But 8% of all bankruptcy filers will return to court in the future to claim bankruptcy once more.
The good news is that if youre struggling with debt, you are allowed by law to file not only for a second bankruptcy but also a third, fourth, etc., if necessary. The caveat is the waiting period between bankruptcies, an issue for which United States Bankruptcy Courts maintain strict stipulations.
Exceptions To The Automatic Stay In Divorce
While the automatic stay stops proceedings related to property division in divorce, it doesnt affect the actions to establish child support or custody. If your divorce proceedings are at the point of determining who gets child custody or whether either spouse will take up child support obligations, filing for Chapter 7 bankruptcy wont stop these proceedings.
If a divorce is looming following a spell of financial struggle, the decision of what event to file first is a crucial one and is determined by several factors, as highlighted above. It is important to consider the property that you can keep in bankruptcy and how filing for Chapter 7 bankruptcy may affect your spouses credit. Seeking the counsel of a bankruptcy and family lawyer will also help you make the right decision for the situation.
Call Now For A Personalized Case Evaluation! 373-6827
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What Are The Time 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 discharge was entered doesnât matter.
Chapter 7 bankruptcy â¡ï¸ Chapter 7 bankruptcy: 8 years
This is the longest amount of time between cases required by the Bankruptcy Code. Chapter 7 provides the quickest form of debt relief through a bankruptcy filing and doesnât require the filer to complete a repayment plan before getting their bankruptcy discharge.
Chapter 7 bankruptcy â¡ï¸ Chapter 13 bankruptcy: 4 years
It is possible to file Chapter 13 bankruptcy soon after receiving a Chapter 7 discharge, the filer just wonât be eligible to receive a Chapter 13 discharge in the second case. So, someone who successfully discharges their unsecured debts through Chapter 7 can file a Chapter 13 bankruptcy to pay off tax debts or other types of debt that survived the prior case.
Chapter 13 bankruptcy â¡ï¸ Chapter 7 bankruptcy: 6 years
This waiting period can be waived if you paid back 100% to your unsecured creditors in your Chapter 13 plan and the original case was found to be in good faith. Plus, since a Chapter 13 repayment plan can take up to 5 years to complete before resulting in a discharge, itâs possible to file Chapter 7 bankruptcy about 1 year after receiving a Chapter 13 discharge.
Chapter 13 bankruptcy â¡ï¸ Chapter 13 bankruptcy: 2 years
Frequency Of Bankruptcy Discharges For Chapter 7 11 12 13
But what happens when you need to file bankruptcy again?
Once you have already filed for Chapter 7 bankruptcy, the bankruptcy court will deny a discharge in a subsequent Chapter 7 case if you already received a discharge in your previous Chapter 7 or Chapter 11 case if it was filed within the last eight years. In simple terms, you can obtain a Chapter 7 bankruptcy discharge every eight years. The eight-year time period starts to run from the date your previous case was filed.
The bankruptcy court will also deny a Chapter 7 discharge if the debtor has previously received a discharge in a Chapter 12 or Chapter 13 case filed within the last six years unless the debtor meets fairly strict requirements regarding the amount of debt she paid back in her Chapter 13 case. Similarly, a debtor is ineligible for a second discharge under Chapter 13 if he or she received a prior discharge in a Chapter 7, 11, or 12 case filed within four years of the current case or in a Chapter 13 case filed within two years of the current case.
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Chapter To Chapter Options
Chapter 7 to another Chapter 7 bankruptcy 8 years Chapter 7 now filing for Chapter 13 bankruptcy 4 years Chapter 13 now filing for Chapter 7 bankruptcy 6 years Chapter 13 to another Chapter 13 bankruptcy 2 years
The wait times help prevent abuse of the system and high credit card debt that cannot be repaid. You are expected to make your best effort to pay off bankruptcy in between filings.
Is Filing Bankruptcy Bad And Will I Look Like A Deadbeat For Filing For Bankruptcy
Though filing Bankruptcy may not always feel good, there is nothing wrong with filing Bankruptcy. Bankruptcy exists because sometimes it is necessary. Many famous people, politicians, businesses and even countries have filed Bankruptcy.
Finances can be complicated and life happens. There is no shame in taking advantage of the options readily and legally available to you. It would be far worse to allow yourself to drown in debt and stress than to take a positive step by getting a fresh start.
Deadbeats are people who have the ability and means to pay their obligations but choose not to pay.
Filing Bankruptcy is not a blemish on your character or intentions. It is a viable and often times the best option for people and organizations that find themselves financially insolvent and need debt relief.
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Alternatives To Filing Bankruptcy Twice
Bankruptcy has its benefits in helping people work their way out of debt. But it has negative impacts on your credit score, and it takes a toll mentally and financially. The time limits for filing twice also can be problematic if debt has again become a problem.
Alternatives to waiting out the required time could include debt settlement or debt consolidation, which can be worked out with a nonprofit credit counselor. A bankruptcy lawyer also could walk you through options.
Debt settlement could be a good approach for unsecured debts like medical or credit card debt. In this approach, you and a counselor work out an amount to pay the debtors to settle the debt. It might not be the entire amount, but the creditor at least knows it will receive something whereas in bankruptcy it may receive nothing.
Debt consolidation combines multiple unsecured debts into one that is paid off at a lower interest rate. This allows for one payment per month, and reduces the total interest paid. Typically it is paid to a credit counseling agency, which then pays the individual creditors. This approach requires regular payments and a steady source of income. Depending on what form of consolidation you choose, it may require a credit score of 670 or higher.
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From Chapter 7 Bankruptcy To Chapter 13 Bankruptcy
Actually, you can file a Chapter 13 bankruptcy immediately after filing a Chapter 7 bankruptcy. It is known as a Chapter 20 bankruptcy. This is a strategy employed for a client who is eligible to file a Chapter 7 but is also in need of:
- catching up a house payment
- restructuring a car payment
- or paying off a priority debt, like the IRS.
The Chapter 7 bankruptcy eliminates all unsecured debt. Upon discharge, the Chapter 13 bankruptcy is filed to restructure the secured debt payments. There is no Chapter 13 bankruptcy discharge in this scenario. However, the discharge isnt needed, since the client already received a Chapter 7 bankruptcy discharge.
If there is at least 4 years between the Chapter 7 bankruptcy filing and the subsequent Chapter 13 bankruptcy filing, a Chapter 13 bankruptcy discharge will be granted upon the successful completion of your Chapter 13 plan.
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Can A Person File A Chapter 7 Bankruptcy Twice
If your first bankruptcy was a Chapter 13, and you want to file a Chapter 7, you cannot receive a Chapter 7 discharge on the second bankruptcy until at least six years have passed. However, there are two exceptions to this rule: You successfully paid all of your unsecured creditors during your first bankruptcy.
Can I File Bankruptcy Again
Yes, borrowers can file bankruptcy more than once. However, there may be waiting periods to refile imposed by the Court. The length of the wait will depend on details of your previous case and type of new case you intend to file. Additionally, there may be limitations placed on the automatic stay protection. An automatic stay is enacted when a bankruptcy is filed to immediately stop all collection activity. If the previous case was dismissed and you refile within one year, the automatic stay lasts only 30 days. If you had multiple dismissals within one year of your new filing, no automatic stay will be granted.
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Filing Under A Different Chapter
If you filed under Chapter 7 previously, you can seek a discharge under Chapter 13 four years after the Chapter 7 filing. If you filed under Chapter 13 previously, you can seek a discharge under Chapter 7 six years after the Chapter 13 filing in most cases. There are certain exceptions to the latter rule, including situations in which a debtor paid off their unsecured debts entirely in the previous Chapter 13 proceeding. They also may be able to file their Chapter 7 case sooner if they can prove that they proposed their plan in good faith, made their best effort to keep up with it, and paid at least 70 percent of the claims under the Chapter 13 repayment plan.
How Much Does Chapter 13 Bankruptcy Cost
As with Chapter 7, the filing fee for Chapter 13 will vary by filing location. For instance, the filing fee for Chapter 13 bankruptcy in Tampa is $310. There will also be fees for the credit report and credit counseling class. Additionally, the Court may charge a $45 fee for a mortgage modification requires. If you need to convert your Chapter 13 to a Chapter 7, there is a $25 fee.
The fees will be changed occasionally by the Court. You can access the fee schedule for the Middle District of Florida by . For information on the fees charged by the Northern District of Florida , .
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