How To Get Out Of Debt Keep The House Car Retirement Savings And Finally Get A Fresh Start
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;
Filing Bankruptcy Vs Discharging Debts
Someone not familiar with bankruptcy law could be forgiven for looking at bankruptcy as a singular process. There exists an important difference between filing for bankruptcy and actually receiving a bankruptcy discharge by either filing a Chapter 7 Bankruptcy Straight Bankruptcy or by Chapter 13 where your debts are resolved through a payment plan.
Consequences Of Filing Bankruptcy More Than Once
There are, however, implications and consequences of filing bankruptcy more than one time.
One of the most serious implications of a second bankruptcy is that you will be bankrupt for a longer period of time.;The first time you file bankruptcy you are eligible to be automatically discharged from bankruptcy in nine months . In a second bankruptcy the length of bankruptcy increases to a minimum of two years, and increases to three years if you have surplus income.
A second bankruptcy will also have an impact on your credit report. The major credit reporting agencies in Canada generally report a first bankruptcy for six or seven years after the date of discharge. A second bankruptcy can remain on your credit report for up to 14 years, or twice as long as a first bankruptcy. That can negatively impact your ability to borrow in the future.
How often can you file bankruptcy? It is possible to file bankruptcy for a third time, but if you do you will be required to attend a discharge hearing in bankruptcy court. You will be required to explain to the judge why you filed bankruptcy three times, and it will be up to the court to decide if and when you get discharged. The court could impose conditions on your discharge, such as holding your bankruptcy open for an extended period of time, or requiring you to make additional payments. A third bankruptcy is something to avoid.
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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.
So How Many Times Can You File Chapter 7 Bankruptcyin Total
Now that you understand how long youll have to wait from the date of your last bankruptcy before you can go this route again, youre probably still wondering exactly how many times can you file chapter 7 bankruptcy;in total?
As mentioned previously, there are no hard and fast rules regarding the number of total times you can file for bankruptcy. The important thing is keeping track of the dates from previous filings and knowing the impact they may have on future attempts to file. You can technically file for bankruptcy as many times as you feel that you need to, but since you can only legally receive a discharge from your debts every eight years, it is imperative to work within this time frame to ensure you are within the legal bounds of the bankruptcy system.
Remember, bankruptcy doesnt have to be your last stop or a one-time solution! If its the best choice for your circumstances, consider talking to a bankruptcy attorney about filing again.
For more information on chapter 7 bankruptcy and more, contact the industry leaders at the Van Horn Law Group. With extensive experience in all things related to South Florida bankruptcy, youll find the guidance you need to make the process much less stressful.
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What Happens When You File Bankruptcy
What happens when you declare bankruptcy? After you file bankruptcy you are granted an automatic stay, which is essentially a block put in place to keep creditors from trying to collect on debts.
Creditors almost always try to collect on debts through Texas State Court breach-of-contract claims. This is why bankruptcy happens in federal court, where federal actions have the power to preempt state court actions under the Constitution. What this means is that after filing bankruptcy, your creditors cant deduct money from your bank account, garnish your wages, evict you from your home, repo your car or go after any of your other assets while your bankruptcy is ongoing.
What happens after you file bankruptcy is that you are given a case number and a trustee is assigned to your case. You will next be scheduled to attend credit management classes, as well as a creditors meeting between you, your trustee, and any creditors who wish to be heard. During the meeting, which is more like a conference than a trial, the trustee will ask you questions about your financial status.
One question we often hear is if you declare bankruptcy can you leave the country? The answer is yes, as long as you are present for all of your scheduled meetings.
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
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Chapter 13 Followed By A Chapter :
If you have previously filed Chapter 13 Bankruptcy and received a discharge, than you need to wait six years from the date of filing your last Bankruptcy before filing Chapter 7 Bankruptcy.
Otherwise, you will not receive a discharge in the Chapter 7 case unless you meet certain conditions.
If you want to file Chapter 7 Bankruptcy before six years, the following must occur.
- You must have paid 100% of allowed unsecured claims in your prior Chapter 13 Bankruptcy; or
- You must have paid 70% of allowed unsecured claims during your Previous Bankruptcy Filing under Chapter 13 and the Court must determine that you made your best effort and proposed your plan in good faith in the prior Chapter 13 Bankruptcy.
It is crucial to understand the details about your previous bankruptcy filing and how it affects your ability to receive a discharge in your upcoming bankruptcy case.
It is also important to understand the impact a prior bankruptcy dismissal can have on the automatic stay, because it is the automatic stay that prevents creditors from taking action against you such as a garnishment, foreclosure or repossession.
Why File For Bankruptcy If You Cant Get A Discharge
In some situations, it makes sense to file for Chapter 13 bankruptcy even if you cant get a discharge at the end. In Chapter 13, you make payments to the bankruptcy trustee under a payment plan that has been approved by the court. The bankruptcy trustee distributes those payments among your creditors.
If you are not eligible for a discharge, once the Chapter 13 case is over, youll remain liable for the remaining debt. But while youre in bankruptcy, youll get some breathing room. It can provide an opportunity to catch up on a back mortgage or car payment while staving off foreclosure or repossession. Or it can help you repay a tax debt over time, without risk of wage garnishment or tax refund offset.
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How Do I Start The Bankruptcy Process
A good place to start is to get a free copy of your credit report, which you are able to do once per year. Keep in mind that not all of your debts will be listed on the report. Tax debts, medical bills, utility bills and some loans will not be included.
You will also need to secure copies of:
How Often Can You File Bankruptcy
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In a Nutshell
You can file more than one bankruptcy in a lifetime. How many times depends on how long it’s been since your last bankruptcy case and what type of bankruptcy you filed. We’ll break it down for you.
Written by Attorney Andrea Wimmer.
Have you filed bankruptcy in the past but are faced with a financial situation that you canât resolve despite your best efforts? If youâre facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or any other type of debt youâre no longer able to pay, you can ask the court for bankruptcy protection a second time.
Know that youâre not alone. A 2006 paper on a found that 8% of bankruptcy filers end up filing bankruptcy again. The 2005 changes to the Bankruptcy Code, intended to reduce overall filings, have not had much of an impact on this number.
Bankruptcy is a legal way for individuals who can no longer afford to pay their debts to get permanent debt relief through a bankruptcy discharge. The Bankruptcy Code provides for three types of consumer bankruptcies known as Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy.
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How Often Can Someone File For Bankruptcy
As an example, you could file Chapter 7 bankruptcy to eliminate most of your unsecured debt. At some point down the road, you could file Chapter 13 bankruptcy, which would allow you to reduce certain payments, eliminate a second mortgage, removal all junior liens and pay off specific debts more quickly than without filing.
How Often Can You File For Bankruptcy In Ohio
People suffering under too much debt often choose to file for bankruptcy to get a fresh start. But what happens if you suffer additional setbacks, acquire more debt, and need additional help?
Can you file for bankruptcy more than once in Ohio?
If you have questions about bankruptcy and how often you can file, contact the experienced Cleveland bankruptcy attorneys at Luftman, Heck & Associates. We will work with you to determine your best options.
Call us today at for a free consultation.
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Filing For A Second Case Even If You Are Not Entitled To A Discharge
How often you can declare bankruptcy depends on the type of bankruptcy discharge that you have. But you can still file for a second case even if you were not entitled to a discharge on the previous cases that you have filed.
There are instances when filing for bankruptcy can help even if you are not eligible for a discharge. Situations such as being behind on your tax or mortgage payments allow you for an automatic stay. You can take time with a bankruptcy case to catch up on your missed debt payments. The automatic stay is applicable to everyone who wants to file for bankruptcy even if they are unable to get a discharge.
After Receiving A Discharge In A Chapter 7 Bankruptcy:
- Before filing another Chapter 7: You must wait exactly 8 years from the date of your previous filing. ;If you did try to file before that date, the filing would not receive a discharge and you would receive no protection from collections.
- Before filing a Chapter 13: You must wait for exactly four years from the date of your previous Chapter 7 filing prior to filing for relief under Chapter 13. ;Filings made before four years have passed will not result in a discharge.
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Different Types Of Bankruptcy Explained
A Chapter 7 bankruptcy eliminates most debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 bankruptcy allows you to keep all of your property as long as the monthly repayment plan pays for the value of your assets. The debts that donât get paid as part of the repayment plan are discharged once the plan has been completed. The discharge of your debts gives you the fresh start you need.
The Chapter 11 bankruptcy process provides similar relief to that provided in Chapter 7 and Chapter 13, but is generally reserved for filers with businesses or significant assets and is a lot more expensive than even a Chapter 13 bankruptcy. This article will focus specifically on Chapter 7 and Chapter 13 bankruptcy.
Could Chater 11 Apply To An Individual
Although Chapter 11 is the most common type of bankruptcy filed by businesses, it can be used by individuals as well. An individual may file Chapter 11 if a high level of disposable income places them outside of the debt limit for a Chapter 13 or Chapter 7. A high-profile or high net worth individual is more likely to file a Chapter 11 bankruptcy than would someone in a typical financial situation.;
More commonly, Chapter 11 allows a business to remain active while paying creditors over a specified period of time.
To do this, the business will file a voluntary or involuntary petition with the bankruptcy courtvoluntary petitions are filed by the debtor, whereas involuntary petitions are filed by the creditors, but not until after certain criteria have been met. Generally speaking, the debtor will then have about four months to establish a reorganization plan for going forward. If it sees fit, however, the court may extend this period to up to 18 months.
The purpose of the reorganization plan is to prioritize certain debts and creditors by placing them into different classes. Unsecured claims, for example, would be in their own class. If you believe that filing Chapter 11 bankruptcy may be the best option for your business, it is in your best interest to speak with an attorney who specializes in bankruptcy law.
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