How Often Can I File For Bankruptcy In Kansas Or Missouri
Federal law determines how often you can file for bankruptcy and which of your debts can be discharged. For Chapter 7 bankruptcy, your debts can be discharged every eight years as determined by the date your previous case was filed.
For Chapter 13 bankruptcy, the time frames can vary according to your case. Typically, your repayment plan will last three to five years, but every case is different.
In addition, a Chapter 7 discharge may be denied if you already filed a Chapter 13 within the last six years. Similarly, you might not be eligible for a discharge under Chapter 13 if you already received a Chapter 7 discharge within four years of the current case, or if you filed Chapter 13 within two years of the current case.
There are tons of exceptions to these rules. A bankruptcy attorney can help you sift through them all and give you a more accurate picture of what your case might look like.
To get the most out of your case and prevent problems down the road, remember your attorney is on your side and needs to know your concerns. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.
If Your Previous Bankruptcy Was A Chapter 13
If you successfully filed for Chapter 13 bankruptcy in the past, this means you had your debts restructured so you could pay them off over three to five years. This also means that you were able to keep your personal property throughout the bankruptcy process.
If you are in a position where you need to file bankruptcy again after a Chapter 13 bankruptcy, you will find that the waiting limits arent quite as severe.
According to Jay Fleischman, a consumer protection attorney with over 20 years of experience representing people in bankruptcy cases, you can file for Chapter 7 bankruptcy any time after a Chapter 13 bankruptcy provided your previous bankruptcy case resulted in you paying off all debts included in the case. The court may, however, allow another discharge if the old case paid at least 70% of your creditors and the new Chapter 13 plan was proposed in good faith and represents your best effort, said Fleischman.
If your Chapter 13 bankruptcy did not result in you meeting these requirements, then you must wait six years from the date of your Chapter 13 filing to file for Chapter 7 bankruptcy.
If you filed for Chapter 13 in the past, you are also eligible to receive a discharge in a Chapter 13 case as long as the first case was filed more than two years before the new one, noted Fleischman.
When You’ve Taken Advantage Of The Bankruptcy Process
If you do something wrong intentionally , the bankruptcy court can punish you by prohibiting you from filing another bankruptcy case for a specific amount of time. In such cases, the court dismisses your case “with prejudice”
Failing to obey a court order will likely result in the court dismissing the case with prejudice. Filing multiple matters with the intent to delay creditors, voluntarily dismissing a bankruptcy after a creditor filed a motion for relief from the automatic stay, or otherwise trying to abuse the bankruptcy system will also be problematic. Expect the court to order you to wait 180 days before refiling another case in these situations.
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How Often Can A Person File Chapter 13
Chapter 13 bankruptcy is also called the wage earners plan. If an individual or couple find themselves in financial hardship after previously filing Chapter 13, there are certain circumstances where they can file Chapter 13 again. Under the bankruptcy court, the regular earner pays for all or part of his debts over a three- to five-year plan. The debtor must file for Chapter 13 bankruptcy with the bankruptcy court within the service area in which he resides.
Surplus Income Adds To The Cost Of Bankruptcy
In addition to the trustee fee and potential loss of assets, you may be required to pay a portion of your monthly income towards your debts, depending on how much you earn and the size of your household. The principle is that, if you earn more than your household needs to survive, you must pay a portion of the surplus income to your trustee for the creditors. The formula is prescribed by law. The idea is that the more you earn, the more you can presumably afford to repay to your creditors. In general, the greater your level of income, the greater the cost of a bankruptcy and the more attractive the alternatives to bankruptcy become.
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Bankruptcy Filing Vs Discharge
As we have explained, there is no limit on the number of times a person or a business can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcies. To be clear, bankruptcy itself is merely a filing process with the Federal District Bankruptcy Court which opens up your case including your assets, debts, liabilities, and inability to pay for review.
However, in all but a few cases, a bankruptcy filing also generates something called an automatic stay from creditors, meaning that after you file bankruptcy in federal court, your creditors are legally prevented for a certain amount of time from pursuing you in the state courts for failure to pay your debts. An automatic stay is like a shield, preventing creditors from suing you while the bankruptcy trustee and judge work together to assess your case.
Different from a bankruptcy filing, which happens at the beginning of your case, is a bankruptcy discharge, which happens at the end of your case. Discharge means that the court has reviewed your financial situation, determined you are unable to pay some or all of your debts and discharged your obligation to pay them.
Can I File A Different Chapter Of Bankruptcy
If you filed for one type of bankruptcy and youre interested in filing for a different type, there are still time limits that affect when you can receive a second discharge.
- If you received a Chapter 7 discharge and you now want to file for Chapter 13: You must wait four years from the date you filed the Chapter 7 case to be eligible for a discharge in a Chapter 13 bankruptcy.
- If you received a Chapter 13 discharge and you now want to file for Chapter 7: Typically, you must wait six years from the date you filed the Chapter 13 case before you can file for Chapter 7. However, if before six years you have paid back all your unsecured debts, or paid at least 70% of your unsecured debts , you are able to file for Chapter 7 immediately.
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Understanding A Bankruptcy Discharge
A bankruptcy discharge occurs at the end of a successful bankruptcy where all of the filers debts are wiped out with the exception of those that cannot be discharged. Getting a bankruptcy discharge is the end goal for all bankruptcy cases, and the date of discharge is a significant one in that it sets when a debtor can file for bankruptcy again in the future.
Conditions That Can Revoke A Bankruptcy Discharge
While there is a chance for you to file for bankruptcy many times in your lifetime, it is critical to note that there are certain conditions that can lead to the revocation of your bankruptcy discharge. Regardless of whether you have been successful in filing for bankruptcy in the past, bankruptcy should not be used as a means to run away from your obligations.
The bankruptcy court can still revoke or deny your discharge if you do the following things:
A request for revocation on your bankruptcy discharge will be filed if you are proven to have conducted any of the activities above. The request can be filed within a year of the discharge or before the date the case is closed.
The bankruptcy court will decide whether the allegations for fraudulent, concealment or unacceptable activities are true before any revocation occurs.
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How Many Times And How Often Can I File Chapter 13 Bankruptcy
| Dec 29, 2017 | chapter 13 |
In short, the answer to this question is that a person may file bankruptcy as many times as they wish throughout their lifetime. The only stipulation to this statement would be that any bankruptcy filing will depend on eligibility for filing under a given chapter. For example, under the United States Bankruptcy Code, an individual is ineligible to file under if they have unsecured debt that exceeds a total of $394,725 or secured debt that exceeds a total of $1,184,200. In these cases, a party would need to file under a different Chapter.
Now that we have determined how many times a party can file bankruptcy, lets discuss how often. The answer to this question is a little more complicated and would probably be better worded as how often can I receive a bankruptcy discharge?
Under the U.S. Bankruptcy Code, an individual who files and receives a final discharge in a Chapter 13 bankruptcy is ineligible for another discharge under Chapter 13 for two years from the original discharge date. This does not mean that a party cannot file another case in order to prevent a foreclosure, stop a repossession, etc. It does, however, mean that a discharge will not be entered at the end of that plan, and any collection activity can resume for any debts that are not brought current, paid in full or otherwise agreed upon during the active case period.
Filing For Bankruptcy Even If No Discharge Is Allowed
It may seem counterintuitive, but sometimes, debtors will file for Chapter 13 bankruptcy even though they know they will not be able to get a successful bankruptcy discharge when all is said and done. During Chapter 13 bankruptcy, the debtor works with the trustee on a repayment plan to pay back creditors.
If the debtor works through this plan and pays back creditors according to the terms but the case does not end up in a discharge, the debtor will still walk away with a lower amount to pay creditors outside of the bankruptcy. The debtor remains on the hook for the debt, but some breathing room will be given during the period the Chapter 13 repayment period is going on. It can help the debtor pay back these debts but in a much more reasonable manner.
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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.
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.
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Chapter 13 To Chapter 7
If you have a discharge from Chapter 13 bankruptcy, then you need to wait six years before filing a Chapter 7 bankruptcy. Note that its possible to get a full debt discharged in Chapter 7 bankruptcy, even if you do the filing within six years. However, you need to pay all the unsecured lenders at least 70 percent during Chapter 13s previous bankruptcy. If you file for a Chapter 7 bankruptcy and have not cleared at least 70 percent of your last Chapter 13 debt, then you wont get a discharge. This means that you should wait for the 6-year time-frame to elapse.
Are There Any Situations Where You Cannot File For Bankruptcy
How often can you file bankruptcy in Texas? As many times as you need to, with one very narrow set of exceptions. In very narrow circumstances well call rapid fire bankruptcy, you cannot file a bankruptcy case under any chapter earlier than 180 days after the dismissal of a prior case. Also, you may be barred from filing if ordered by a bankruptcy judge in a motion or order.
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Do You Qualify To File For Bankruptcy
If you have questions about your eligibility for bankruptcy, especially if you have previously filed, you should discuss your questions with qualified experienced bankruptcy counsel.
David M. Offen has spent over 20 years practicing bankruptcy law in Philadelphia. He has helped more than 10,000 clients through the bankruptcy process. Call 625-9600 to schedule a free consultation on how bankruptcy can help you to a better financial life.
If You’re Overwhelmed By Your Debts Bankruptcy Is Just One Option
If you have large debts that you cant repay, are behind in your mortgage payments and in danger of foreclosure, are being harassed by bill collectorsor all of the abovedeclaring bankruptcy might be your answer. Or it might not be.
Bankruptcy can, in some cases, reduce or eliminate your debts, save your home and keep those bill collectors at bay, but it also has serious consequences, including long-term damage to your . That, in turn, can hamper your ability to borrow in the future, raise the rates you pay for insurance, and even make it difficult to get a job.
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Contact Parker & Dufresne Today
Facing the decision to file for Chapter 7 or Chapter 13 bankruptcy is already a difficult one. You dont want to make it more difficult by having your bankruptcy denied by the courts.
The right counsel and representation will work with you to ensure it that doesnt happen. At Parker & DuFresne, we represent clients in the Northeast Florida area, including Jacksonville, St. Augustine, Orange Park and the beaches, and we can help safely guide you through the bankruptcy process. Contact our offices for a free consultation today.
Different Types Of Bankruptcy
For individuals, there are two main types of bankruptcy cases. Most individual debtors file for Chapter 7, which can also be described as âstraightâ bankruptcy or âliquidation.â Under this plan all non-exempt assets are converted to cash , and secured creditors may have the item they financed turned over to them , unless the debtor reaffirms the debt with the courtâs approval prior to obtaining a discharge. Chapter 13, also called âreorganization,â is an option for people with regular income and debts that are less than the limits allowed by law. When you complete a Chapter 13 plan, you have the satisfaction of keeping your assets, paying your creditors, and possibly discharging some of your debts.
Bankruptcy is a serious step. If you choose to file Chapter 7 or Chapter 13, you will probably need to hire an attorney. Be sure to find an attorney who has experience handling the type of bankruptcy case you plan to file. The following overview of Chapter 7 and Chapter 13 will give you some idea of whatâs involved.
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Exceptions To Discharge From Personal Bankruptcy In Nine Months
The length of your bankruptcy will be nine months, unless one or more of the following is true:
- You fail to perform all your bankruptcy duties, such as regular payments of surplus income to the trustee.
- You have surplus income .
- You have been bankrupt before.
- There is an objection filed to your discharge.
How much longer your bankruptcy period will be depends on the details of your case. Twenty-one month is typical when the bankrupt individual makes a good salary .
How Long Do You Have To Wait For Another Discharge
If you have received a discharge of debt under chapter 7 bankruptcy, you will have to wait before you are eligible to receive a second discharge under chapter 7. If you are going from one chapter 7 to the next, then you must wait at least eight years before you can receive a discharge of debt under this type of bankruptcy.
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Consequences Of Multiple Bankruptcies
A Licensed Insolvency Trustee will explain the consequences to be considered when declaring bankruptcies multiple times.
In addition to your bankruptcy lasting longer, your credit rating will be negatively impacted. The additional reporting for multiple bankruptcies is significant. Compared to a first-time bankruptcy which will stay on your record for 6-7 years, a second bankruptcy can last up to 14 years.