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.
Chapter 7 Vs Chapter 13 Bankruptcy: Whats The Difference
Its important to note the differences between Chapter 7 and Chapter 13 bankruptcy before we discuss how often consumers can file for this type of protection.
Chapter 7 bankruptcy is a process that helps consumers liquidate their assets and pay off delinquent debts. While Chapter 7 bankruptcy allows consumers to keep some of their personal assets up to certain limits, consumers typically choose this type of bankruptcy when they dont have many assets to protect. Chapter 7 bankruptcy can take three to six months to complete, but it does allow consumers to discharge delinquent debts and get a fresh start.
With Chapter 13 bankruptcy, consumer debts are restructured instead of discharged. Families and couples typically choose this type of bankruptcy because they have assets to protect, such as significant equity in their home. Once the Chapter 13 bankruptcy process begins, a court-approved debt repayment plan is set up and followed over three to five years. At the end of Chapter 13 bankruptcy, consumers will have been able to keep all their property and pay off unsecured debts included in their bankruptcy.
How Soon Can You File For Chapter 13 After Chapter 7 Bankruptcy
In order to get debts discharged through Chapter 13, you must wait four years after filing a Chapter 7 bankruptcy.
You can file for Chapter 13 before four years if no debts were discharged in the Chapter 7 filing, but if you had debts discharged in Chapter 7 and want to have debts discharged in Chapter 13, you must wait four years.
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How Long Between Bankruptcy Filings
There’s 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 you’re 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.
Can I Keep My House And Car If I File Bankruptcy
If I file for bankruptcy , can I keep my property ? If you file for Chapter 13 bankruptcy , the answer is yes. In exchange, you may keep your property , assuming you keep up with payments on any loans secured by the property and keep making your repayment plan payments.
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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.
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.
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One Case Pending Within 12 Months
If you had one prior bankruptcy case pending within the previous 12 months dismissed, you could probably file a second case, but the automatic stay will last for only the first 30 days of the latter case. Creditors will have to stop their collection actions, but only for 30 days. After that, the automatic stay will naturally end unless you get court approval to extend.
How Long Do I Have To Wait Between Filing Bankruptcies
Bankruptcy is a legal process governed by the United States Bankruptcy Court. Bankruptcy can help consumers dig themselves out of a financial hole. Common reasons for filing bankruptcy include job loss, to halt foreclosure proceedings, large medical expenses and to stop garnishments. A 2005 study from Harvard University found that more than half of people file bankruptcy due to medical bills.
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Can I File A Michigan Bankruptcy Again
Can I file a Michigan Bankruptcy again is a question we get a lot. ;Even if you have received a Chapter 7 or Chapter 13 discharge in the past, you may be able to file bankruptcy in Michigan again. However, there are certain requirements that must be met in order to receive a discharge. An experienced Detroit bankruptcy attorney; can evaluate your situation to verify if you are qualified.
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.
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Your Bankruptcy Discharge Can Be Revoked
Additionally, bankruptcy courts may revoke a discharge under certain circumstances. For example, a trustee, creditor, or the U.S. trustee may request that the court revoke the debtors discharge in a Chapter 7 case based on allegations that the debtor obtained the discharge fraudulently, like if you concealed property or;failed to keep adequate records.
Typically, a request to revoke the debtors discharge must be filed within one year of the discharge or, in some cases, before the date that the case is closed. The court will decide whether such allegations are true and, if so, whether to revoke the discharge.
How To File A Motion To Extend The Automatic Stay
If you want to extend the automatic stay, you must file a motion with the court. In your motion, you’ll explain why your previous bankruptcy was dismissed and why the court should extend the stay in your current case. You’ll have to prove that you filed the subsequent bankruptcy in good faith .
The specific procedures for filing a motion to extend the automatic stay depend on the rules in your jurisdiction. But the following are typically the most common steps you must take:
Find and complete the appropriate forms. Each bankruptcy district has forms for specific motions and notices. Check with your local bankruptcy court to find all paperwork related to motions to extend the automatic stay. But be aware that your jurisdiction may not have a standard form to fill out. In that case, you will have to create the motion and declarations. You can find your court’s website using the Federal Court Finder tool.
Obtain a hearing date and file the motion. In most cases, you will need to obtain a hearing date from the court before filing the motion . Keep in mind that the filer must complete the hearing before the stay expires, so typically you must file your motion immediately after filing your case. You’ll tell the court why your first bankruptcy was dismissed and explain why this case is filed in good faith. Then you’ll serve the paperwork on the bankruptcy trustee and your creditors .
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What If My Previous Case Wasnt Discharged
Sometimes the bankruptcy court dismisses or ends a case without a discharge. That could happen if you failed to appear in court, ignored a court order or voluntarily dismissed your own case because a creditor filed a motion to continue collection efforts. If your case was dismissed, you have to wait 180 days to file again. Note that subsequent filings might not earn you the automatic stay of collection, repossession and foreclosure actions. So you may not be as shielded from creditors pursuing payment.
In other instances, courts can deny the discharge of your debts in a bankruptcy. Reasons for denial include failure to provide documents, hiding assets or perjury.
When The Court Dismisses Your Bankruptcy For Other Reasons
If the court dismisses your bankruptcy case and you file another case within one year, the automatic stay in the new matter would be limited to 30 days. If you had two or more dismissals within one year of your new bankruptcy, you wouldn’t receive the benefit of the automatic stay.
In either situation, the remedy is to file a motion asking the court to order or extend the automatic stay in your current case. You’ll need to explain why doing so would be fair in the present matter.
What Is the Automatic Stay in Bankruptcy?
The automatic stay is the cornerstone of bankruptcy. It protects you from collection actions while the bankruptcy court processes your case. For instance, the automatic stay prohibits creditors from calling or contacting you about collecting their debt, as well as lawsuits and foreclosure actions. If a creditor harasses you or continues its collection efforts against you in violation of the automatic stay, you will typically have grounds to seek damages against it.
Also, automatic stay penalties exist for debtors, too, for instance, if you commit bankruptcy fraud by hiding assets, lying on your bankruptcy papers, or otherwise filing your case in bad faith. The bankruptcy court can prohibit you from filing another bankruptcy for a more extended period or prevent you from wiping out any of the debts listed in the current case.
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Issues With Chapter 7 Conversion
When you file for Chapter 13 bankruptcy, part of the process will be that the court will officially approve a repayment plan you must follow to receive a final discharge. If you cant agree on a plan that the court will approve, in some cases, you can convert your filing to Chapter 7.
However, if you already filed once, you have these varying time requirements before your second discharge. So, converting a Chapter 13 filing to Chapter 7 can be a problem. You may be past the amount of time required to receive a discharge with Chapter 13, but not long enough to receive a discharge with Chapter 7.
This makes having the right bankruptcy services on your side even more essential on a second bankruptcy, because you may be navigating some tough waters.
How Many Years Can I Have Between Bankruptcies
When thinking about whether to file for bankruptcy again, the first question we need to answer is which bankruptcy filing was previously discharged. Check the table below; it will show you how soon you can file Chapter 7 after Chapter 7 and 13, in addition to when you can file Chapter 13 after Chapters 7 and 13.
|Chapter 7||6 years from the first filing date|
Chapter 7 to Chapter 7 : If you received a Chapter 7 discharge and want to file Chapter 7 again, you will need to wait eight years before filing again. Please note that the eight years begins on the original date of the previous Chapter 7 bankruptcy filing and not the discharge date.
Chapter 7 to Chapter 13 :; If you previously filed a Chapter 7 bankruptcy, successfully received a discharge, and would like to file a Chapter 13 case, you will need to wait for four years after the date of filing of your Chapter 7.
The point of filing in this order is not to discharge the debts but to secure additional time to catch up on them. It can be difficult to qualify for a Chapter 7 bankruptcy and then show you have the means to pay for a Chapter 13 plan, so please consult with a bankruptcy service before taking this route.
Chapter 13 to Chapter 13 : If you successfully filed a Chapter 13 case in the past and are looking to file a Chapter 13 case again, you need to wait at least two years from the filing date of the previous case.
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Prior Chapter 7 Bankruptcy
If you have filed Chapter 7 bankruptcy in the past and received a discharge of your debts ;you are required to wait 8 years from the filing date in order to file a Chapter 7 bankruptcy again. An individual can file a Chapter 13 bankruptcy anytime after exiting a Chapter 7.; However, you are required to wait 4 years after the prior Chapter 7 filing in order to receive a discharge under Chapter 13.;; Filing a Chapter 13 bankruptcy may benefit an individual even if they are not eligible for a discharge. ;For example, you may be able to pay your obligations in a more affordable payment plan, stop foreclosures and catch up on past due mortgage payments.; If you have filed Chapter 7 bankruptcy before and are considering filling again, a qualified Michigan bankruptcy attorney can help guide you through the process.
Need Help Filing A New Bankruptcy
If you find it necessary to file another bankruptcy, we can discuss your situation in depth and complete privacy by phone or at a sit down free consultation.
Orange County bankruptcy attorney, Norma Duenas, is an experienced bankruptcy attorney who graduated from the University of San Diego Law School, Cum Laude. Ms. Duenas has handled many complex Chapter 7 and Chapter 13 bankruptcy cases. She has previously assisted clients in litigation, immigration matters and has handled hundreds of Chapter 7 and Chapter 13 bankruptcy cases in the Riverside, Orange County, Los Angeles, Temecula and Murrieta areas of Southern California.
If youd like to have a no cost consultation with bankruptcy attorney Duenas, you can make an appointment with our founding attorney, Norman Duenas, by calling or if its after hours and well get back to you.
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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.