Consider The Pros Of Double Filing
Getting a Chapter 7 discharge and immediately filing for Chapter 13 will give you more time to pay back debts that cannot be discharged, such as child support or spousal support.
Similarly, if you just need more time to pay off your debt, you can consider filing for a second Chapter 13 early. This will not discharge any debt but adds another five years to your bankruptcy payment plan. This will buy you more time instead of having automatic wage garnishment applied to your paychecks.
If you did not receive a discharge during the first filing, you might get one in the second bankruptcy.
If you are considering double filing, you need to work with a bankruptcy lawyer to get it right. There are many nuances that could lead a court to declare that you have filed again in bad faith.
Filing Bankruptcy After Your First Bankruptcy Case Was Dismissed Or Discharge Denied
If your previous bankruptcy did not go through, special waiting periods apply. How long you must wait depends on whether your bankruptcy case was dismissed or denied. In most cases, if your bankruptcy is dismissed, you can file again right away. However, if it was dismissed due to certain factors, such as your failure as a failure to comply with legal requirements, you might need to wait 180 days before you re-file. A prior dismissal could also affect the automatic stay of collection efforts that normally accompanies a bankruptcy filing. If your previous bankruptcy resulted in a denial of final discharge, you are generally eligible to file again immediately.
Filing for bankruptcy is complex, and legal waiting periods make subsequent bankruptcies even more complicated than first bankruptcy filings. An experienced bankruptcy attorney can walk you through the laws and regulations that govern your particular case. He or she can help you choose the type of bankruptcy to file that will make the most sense for you. The attorney can explain this complex area of the law in simple terms so that you will be able to completely understand what happens if you file bankruptcy twice.
If you are ready to take the first steps toward financial freedom, call The Law Offices of David M. Offen today at 625-9600 to schedule your free initial consultation. Were here to help you every step of the way.
How Long Does Bankruptcy Last In Canada
Not forever, fortunately. Bankruptcy is a legal process that is intended to provide a new financial start, without being unnecessarily punitive.
Your bankruptcy ends when you receive a discharge, the event that actually cancels your debts.
Several factors affect the length of personal bankruptcies in Canada.
How Long Does Bankruptcy Last In Canada?
First-time bankrupts who make very little income are often eligible for discharge after the legislated minimum period of nine months. However, your bankruptcy will last for more than nine months if you make surplus income, or if this is not your first bankruptcy.
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Is The Discharge Important In The New Chapter 7 Case
As I discuss in the article, How To File Bankruptcy Again When Youre Back In Debt, you need to think about why youre filing a new Chapter 7 bankruptcy case. In some situations, the discharge may not be important to you.
You may have enough money to repay your debts in full but simply dont want to deal with numerous creditors.
Or you may have a piece of property that could be sold to pay your debts, but dont want the hassle of selling it and dividing up the proceeds.
In those situations, a new Chapter 7 bankruptcy may be a good idea in spite of the fact that you wont get a discharge.
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.
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How To File Bankruptcy More Than Once
Congress has provided the means for individuals and couples to file for bankruptcy relief more than one time. There are a number of rules, however with which we must comply in order to determine the eligibility to file a new bankruptcy case.
First, there are no rules limiting the number of times that you can file for bankruptcy relief.
Second, some cases require a waiting period or a court motion in order to allow you to file bankruptcy again. There are different time limits on how long you need to wait before filing for bankruptcy relief again. What time limit applies depends on what Chapter of Bankruptcy you have filed for in the past and what chapter you wish to file now.
Experienced California Bankruptcy Lawyers
Have you previously filed for bankruptcy relief and are now wondering if you are eligible to file again? The attorneys at Resnik Hayes Moradi LLP can help. Call 344-0043, orcontact our firm online to arrange a free consultation.
Our bankruptcy professionals meet with clients from 7:00 a.m. to 7:00 p.m., Monday through Friday. Weekend appointments are also available.
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Heres Why You Need A Bankruptcy Attorney:
Hiring a Bankruptcy Petition Preparer is NOT a Solution
Pro se filers often hire a BPP as a cheap alternative to a lawyer in an attempt to save money. The BPP may tell you all you need to do is pay them just $75.00 and it will be easy to waive the Bankruptcy Courts $335.00 filing fee. This is often not the case and can eventually result in a dismissal of your case. A BPP cant provide legal advice when a waiver is denied or when other problems arise.
Let there be no doubta bankruptcy petition preparer is nothing more than a typist who, by law, isnt even allowed to give you legal advice. It isnt worth your time or money. Learn more about the risks and responsibilities of filing bankruptcy in Wisconsin without a lawyer, or book your free consultation with our Milwaukee area bankruptcy attorney today.
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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.
Multiple Bankruptcies On Your Credit Report
You may need to consider a court date in between filing for multiple bankruptcies. In some cases, an automatic stay can expire before your next bankruptcy discharge is filed. You need to make sure the discharge happens before the automatic stay expires.
Your credit report may have language such as:
- Bankruptcy Chapter 13 – discharged
- Filing date: 01/01/2013Status date: 01/01/2014
It could also say “there is a bankruptcy on your credit report” or “you have recently filed for bankruptcy” without listing specific details.
Having multiple bankruptcies on your credit history usually means you will have a hard time finding lenders and low interest rates, and you will have a poor credit score for a year or more.
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What Happens To Your Credit Score After Filing Bankruptcy
Chapter 7 bankruptcy and Chapter 13 bankruptcy filings show up on your credit report. How long it shows up depends on which type of bankruptcy you file. Chapter 7 bankruptcy stays on your credit report for 10 years after the filing date. A completed Chapter 13 bankruptcy stays on your credit report for 7 years after the filing date, or 10 years if the case was not completed to discharge.
As a result, filing bankruptcy will initially lower your credit score. How much your credit score will drop depends on how high or low it was before bankruptcy. Generally, a decrease between 100 to 200 points can be expected.
The good news is that you can begin rebuilding your credit as soon as your bankruptcy discharge is entered. It’s possible to have a better score within 1â2 years of filing. The credit scores of most bankruptcy filers are already lower because of missed payments. After the court grants a discharge, most unsecured debts are erased. Credit scores improve because there are no more missed payments and discharged accounts show a zero balance.
After Chapter 7 and Chapter 13 bankruptcy is filed, you will get credit card offers in the mail. These offers can be for secured credit cards, sometimes called prepaid cards, which require a cash deposit. Or, offers can be for unsecured credit cards, but will likely have high interest rates or annual fees.
Filing Chapter 13 After Chapter 7
You must wait four years if you want to file Chapter 13 after first filing Chapter 7. This timeframe applies if you are hoping to achieve a second discharge. If a secured debt has become burdensome, you may wish to file Chapter 13 merely to catch up on the debt without seeking discharge of the debt. Think of a home loan with a hefty mortgage remaining its not practical to think that this debt can be fully discharged in bankruptcy, but it does make sense to catch up on the payments. Some call this type of approach Chapter 20, though this is not an official term.
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Review Your Reports Once The Time Is Up
Once your bankruptcy has been completed and the seven- or 10-year clock has expired, review your reports again to make sure the bankruptcy was removed.
A bankruptcy should fall off your credit reports automatically, but if it doesnt, notify the credit bureaus and ask to have the bankruptcy removed and your reports updated.
Talk To A Bankruptcy Lawyer
Need professional help? Start here.
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Don’t Selectively Repay Loans
If you pay back loans to friends or relatives within one year of filing, or even other creditors within 90 days of filing, then this may be considered a “preferential transfer.” A preferential transfer can be “undone” in bankruptcy.
The bankruptcy trustee may file an adversarial proceeding to get the money back from the person or entity you paid and then disburse the funds in equal shares amongst all of your creditors. If you paid an ordinary creditor, then that might not matter to you. However, you might care if the trustee sues your mom or sister to get the money back.
For more information, see Adversary Proceedings in Bankruptcy: Preferential Transfers.
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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What Is Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows you to become debt-free through whats often referred to as a liquidation process. When using this approach, your debt is discharged and your nonexempt property is typically sold with the proceeds distributed to creditors.
Though it varies by state of residency, personal possessions that may be considered nonexempt and thus sold to cover your debts could include your home, pension, car, personal belongings, coin collection and even jewelry. Each state has a set of its own exemptions, and in some cases, youre allowed to choose between your state exemptions and federal bankruptcy exemptions laid out by Congress.
Your Bankruptcy Case Ends When The Court Closes It Not When You Get A Discharge
Updated By Cara ONeill, Attorney
Getting a discharge of your debts is a significant step in your bankruptcy, but it is not the end of your case. Your case ends when the court enters an order closing it. In this article, youll learn:
- when a Chapter 7 or Chapter 13 case closes
- why the court will reopen a Chapter 7 case, and
- when the court will revoke a Chapter 7 or 13 discharge.
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Cooperating With The Trustee
Bankruptcy filers have an obligation to cooperate with the trustee throughout their bankruptcy case. Filers will need to provide the trustee with a copy of the tax return for the year the case was filed.
After the meeting of creditors the trustee will file a Report of No Distribution indicating that no funds are going to be distributed to your creditors or a Notice of Claims Bar Date stating the due date for creditors to file claims to receive funds in your bankruptcy. Other than these filings, ideally you will not hear from the trustee after the meeting of creditors.
Filing Chapter 13 After Filing A Previous Chapter 13
If your previous bankruptcy was a fully discharged Chapter 13, you must wait 2 full years from your original filing date before filing for a new Chapter 13. If your new Chapter 13 repayment plan is confirmed, you can proceed with your bankruptcy. However, you might run into challenges if the new repayment plan is denied, so you want to have your attorney make sure you have a confirmable plan before filing.
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