Can You File Chapter 7 Twice
Yes under certain conditions. If your previous bankruptcy was a Chapter 7, and it was fully discharged, you cannot have another Chapter 7 bankruptcy discharged if it was filed less than 8 full years after your original bankruptcys filing date.
Double check your filing date from your previous bankruptcy if you are not absolutely certain that 8 years have elapsed. If 8 years have not elapsed since your last filing, denial of discharge will occur, and you will remain legally liable for your debt.
Filing For Bankruptcy Twice: What You Should Know
Filing for bankruptcy too soon after your first case may not help you discharge any debt. Depending on the type of case you file, you may need to wait several years before you can file again.
- Chapter 7: you must wait eight years before filing a second case
- Chapter 13: you must wait at least two years before you can receive a second debt discharge
While you can file twice, does the type of bankruptcy you file matter? Is filing sooner better?
Filing For Bankruptcy Doesnt Help Your Credit At All
When you file for bankruptcy, youre giving your credit the death penalty. The bankruptcy and all of the accounts included in the bankruptcy will appear on your credit report for the next 7 years. Even a few years down the road, creditors will see you as high risk.
Youll have a hard time getting new lines of credit or loans for many years. Most people understand this. However, theyre told they have no other options and have to file bankruptcy if they cant pay their debts. False!
Read Also: Epiq Bankruptcy Solutions
Can You File A Second Bankruptcy In Canada
Filing for personal bankruptcy can be a very stressful and overwhelming time in someones life but the hope for the individual and the goal for the Bankruptcy Trustee is that its a once-in-a-lifetime-event, thats absolutely necessary to eliminate their crippling debt and help them move forward to a debt-free future. And for most people, this is the case.
But, the unfortunate truth is that 10% of people will file second bankruptcies in Canada. Another major life event happens to thema medical emergency, job-loss, or divorceor sometimes its just bad luck. Whatever the circumstances may be, it can leave some people asking: Can I file for a second bankruptcy in Canada?
The answer is yes, you can file a second bankruptcy if you have been fully discharged from your first bankruptcybut there are consequences. The good news it, there are alternatives to bankruptcy that can help you avoid filing for bankruptcy twice.
Can I File Bankruptcy Twice
If you have filed bankruptcy in the past and now find yourself in a similar situation, you may be wondering if you can file bankruptcy twice. In fact, there is not a limit to the number of times you file bankruptcy. However, there may be a time limit between when you are able to file for the second time.
When facing your second, third, or fourth bankruptcy, it is important to understand the limits and restrictions you face. At Luftman, Heck & Associates, our Ohio bankruptcy attorneys have years of experience helping people navigate this type of difficult situation.
You May Like: Best Bankruptcy Software
Also Check: How Many Times Was Donald Trump Bankrupt
Can I File Again
However, many people assume that if the bankruptcy is still listed, they cant file again. The confusion can lead to questions like this:
Question: Ive been working with a debt settlement company since May 2017. They have settled six of my accounts with three more to go.
I chose not to do bankruptcy because it was still showing on my credit report, although it was discharged in 2006. And I didnt know if I can file again.
How I got to this point was through unfortunate circumstances and bad habits. Ive been living paycheck to paycheck, so I used payday loans anytime I had an emergency. Then I got a car title loan just to pay other loans. Now Im stuck with a foolish car title loan until October 2020.
The debt settlement has given me some relief. But I still have quite a bit to go, and I find myself being in the red each month. I have a budget for each pay period, but I still end up using overdraft funds almost every month.
Sometimes, Im over by a $100 and sometimes by $300. It depends on what has happened unexpectedly in that pay period. Those additional fees of $28 each can add up. Ive cut back all that I can and just pay my bills. I do get an extra $200 a month for keeping my grandchild on weeknight and weekends.
What can I do more to help with my financial difficulties?
Jo in California
How Often Can You File For Bankruptcy
During your lifetime, you can file for bankruptcy protection as many times as you need it. There is no limit to how many times you can file, but there are time limits between filing dates.
You could file but not receive any debt discharge in some cases, so you need to be careful.
The U.S. Bankruptcy Code determines the time limits based on what Chapter you file under. The clock starts on the day you filed the previous bankruptcy case . These time limits refer only to bankruptcies where you have received a discharge of your debts.
Recommended Reading: How Many Times Has Trump Declared Bankruptsy
Can I File For Bankruptcy Again
If youve filed bankruptcy before to get a fresh start and have found yourself again under a mountain of debt, you may be wondering can I file for bankruptcy again?
The answer to that question is a matter of timing, the type of bankruptcy you previously filed under , and the Chapter you are now filing under.
Filing Chapter 13 After A Chapter 13 Discharge
An additional Chapter 13 bankruptcy discharge cant be followed immediately by another Chapter 13 filing. Youll have to wait two years from the previous filing date.
This means you will likely still be in the payment plan period of your last Chapter 13 filing when the two years are expired. The wait isnt long if you decide youll require the relief of another filing. If you proceed before two years have passed, you wont be eligible for a discharge in your second Chapter 13 bankruptcy.
You May Like: Virtual Bankruptcy Petition Preparer
A Quick History Of Bankruptcy
The term bankruptcy probably came from the Italian phrase banca rottawhich literally means broken benchbecause in medieval days, if a merchant couldnt pay their creditors, they could come break the merchants market stall .1
What about bankruptcy in America, specifically? Well, several different bankruptcy acts popped up during times of economic crisis before the Bankruptcy Act of 1898. This one said bankruptcy didnt require the creditors approval and stuck around until the Bankruptcy Reform Act of 1978which set the laws we follow today.
Now when you file for bankruptcy, no ones coming to smash your bench , but its still a painful experience.
Why The Bad Reputation
Filing for bankruptcy has a bad reputation in many circles due to the fact that it damages your credit and involves discharging debts that will likely never be repaid. Sure, Chapter 7 bankruptcy isnt great for your credit score and will appear as a public record for 10 years after filing. However, most consumers who file for bankruptcy have already had their credit damaged by a series of late payments.
Whether your bankruptcy filing can be labeled as bad is really a function of whether you intend to defraud the system or whether you have a moral obligation to pay debts that you plan to discharge in bankruptcy. There are many types of debts that are eliminated by filing for bankruptcy. For example, perhaps your primary debts are a $50,000 credit card balance and a $10,000 personal loan that you owe to your brother that he loaned to you while he was having financial problems of his own. If you file for bankruptcy, both the credit card debt as well as the debt to your brother will be eliminated. Filing bankruptcy to discharge credit card debt at 29% interest would not be considered bad by most people.
Consider A Consumer Proposal
What are your options if you have declared bankruptcy in the past, and you have new debts? To avoid the additional costs and consequences of filing bankruptcy more than once you could consider a as a way to negotiate a settlement with your creditors. You will avoid a repeat bankruptcy but still find a solution to your current financial problems.
If you find yourself facing the possibility of filing bankruptcy a second or third time, and ask them about your alternatives.
Is Filing For Bankruptcy A Bad Idea
4.2/5Filing for bankruptcybad ideabankruptcy
Also, what is the downside of filing for bankruptcy?
Filing Bankruptcy: The ConsThe first downside to filing for bankruptcy is that despite helping you out of debt, it will not eliminate all your debts. The following are some of the debts that will remain after filing for bankruptcy: Your most recent back taxes. Most student loans.
Subsequently, question is, is declaring bankruptcy worth it? If youre looking to erase only $2,000 worth of credit card debt, bankruptcy isnt worth the expense. Bankruptcy also might not be the best route if your creditors are willing to reduce what you owe by 30 to 60 percent because you offer them an immediate lump-sum payment.
Then, why you should not file bankruptcy?
#2 Your Debt is Mostly Tax DebtNot all debts are created equal. Certain debts, even in bankruptcy, are not discharged or eliminated through the bankruptcy process. Most taxes fall into this category. Certain taxes like payroll taxes a business owner owes will never go away.
Can filing bankruptcy be a good thing?
For many people, filing a Chapter 7 bankruptcy case is a good thing. They get rid of their debts, keep their money, and keep their property. Watch videos made by people who have used Upsolves no costbankruptcy forms to file Chapter 7. They got rid of their debts and you can too.
You May Like: Get A Copy Of My Bankruptcy
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
Can You File Bankruptcy 2 Times
A person has the legal right and ability to file for bankruptcy two times. If thats the case, youll have to wait at least two years, and possibly longer, depending on the types of bankruptcy youve filed and will file. Factors that influence the time it takes to file a second bankruptcy include: The outcome of the first bankruptcy.
You May Like: United Airlines Filed For Bankruptcy
How Can I Get Bankruptcy Fees Waived
If you cannot afford to pay the filing fee in full or in installments, you can file an Application to Have the Chapter 7 Filing Fee Waived . When you file for bankruptcy, you must pay a filing fee. If you cant afford to pay this fee upfront or in installments, you might qualify for a waiver of the fee.
How Many Years Do You Have To Wait To File Bankruptcy Again To Get A Second Discharge
When can I file bankruptcy again? How long you wait between filing bankruptcies is not strictly set forth in law, however, you are eligible for a second discharge of debt only under certain circumstances depending on the type of bankruptcy you first filed, the date filed, and whether you received a discharge in that first case or not.
If you previously had a Chapter 13 discharged, and you now want to file a Chapter 7, you normally need to wait until 6 years have passed since your Chapter 13 bankruptcy filing. However, there are a couple of exceptions to this rule. If you fully repaid your unsecured debts under your previous Chapter 13, then the waiting period does not apply. Likewise, if you paid at least 70% of your unsecured debts and the court is convinced that you made your best, good faith effort to repay, then you might not need to wait for 6 years. It is important to seek advice from an experienced bankruptcy lawyer if you want to have the time limit waived before you file bankruptcy twice.
If your previous bankruptcy was a fully discharged Chapter 7, and you plan to file for Chapter 13 bankruptcy, you must wait until 4 years have passed since you filed for Chapter 7. However, if your case is not confirmed, your case may get dismissed. Before filing, you want to know that your case should get confirmed and this is something you will want to review with your bankruptcy lawyer prior to filing.
Also Check: Can You Get An Apartment After Bankruptcy
Penalties That Can Impact Refiling For Bankruptcy
While you can usually try for another bankruptcy immediately if your most recent bankruptcy was dismissed, this isnt always the case. In certain cases, you can be penalized if the court found your behavior less than helpful on your last attempt.
If your case was dismissed by a judge for disobeying a court order or failing to appear on your court date, youll have to wait 181 days from your last filing date to file for another bankruptcy. A bankruptcy judge also has the power to issue a special order forbidding you from filing for bankruptcy again.
How Much Does Bankruptcy Cost In Hawaii
In Hawaii, the cost of hiring a bankruptcy lawyer for a Chapter 7 bankruptcy is higher than in the mainland since most things are more expensive on the Hawaiian Islands. Hawaii bankruptcy attorneys typically charge between $1,199 and $1,500 for the initial consultation however, some lawyers offer free consultations.
Also Check: Do It Yourself Bankruptcy Chapter 7 Software
Attentive Service Through Your Second Bankruptcy Filing
As a Michigan bankruptcy attorney, I will work with you one-on-one, and make sure you are in full compliance with filing statutes before your petition is submitted. My firm assists individuals Sterling Heights and Warren, as well as inMadison Heights, Royal Oak andClinton Township.
I provide my clients with a very high level of service and can discuss how to proceed with a second filing during afree initial consultation.
Also Check: How Long Does Chapter 7 Take In Texas
When A Second Filing Might Be Beneficial Even Without A Discharge
Sometimes you don’t need a dischargeyou need time to pay off a debt. For instance, suppose that you owed federal taxes that you couldn’t discharge in bankruptcy, and you could not work out a reasonable payment plan. Rather than have your wages garnished, you could file for Chapter 13 bankruptcy and stretch out the payments over a five-year Chapter 13 bankruptcy payment plan.
A similar approach is to file a Chapter 13 case immediately after receiving a Chapter 7 discharge . Again, all you might need is time to pay off nondischargeable debts, such as domestic support arrearagesnot a discharge.
However, not all courts allow the process, and it can be tricky to qualify for a Chapter 7 bankruptcy and then demonstrate that you have sufficient available income to pay into a Chapter 13 plan. It’s possible, though, after taking into account the debts wiped out. In any case, it would be wise to consult with a local bankruptcy lawyer before attempting to go this route.
Recommended Reading: How Many Times Has Trumps Businesses Filed Bankruptcy
What Documents Do You Need To File For Bankruptcy
Theres a heck of a lot of paperwork and forms and documents involved in bankruptcy, but lets talk about what you need to gather up at the start:
- Tax returns for the past two years or four years
- Income documents
- Mortgage information
- Vehicle information
- Retirement information
- Other documentation showing any other debts or expenses, like alimony or child support
Yes, thats a lot. Bankruptcy is not an easy out! Also, your particular state or court system may require more. Get ready to do a lot of hunting and have a lot of patience here.