Filing Chapter 13 After A Chapter 7 Bankruptcy
If you wish to file a Chapter 13 case after first filing Chapter 7, the court only requires you to wait four years from the filing date of the prior Chapter 7 to discharge eligible. This shorter period is likely because most individuals who file Chapter 13 will still have to pay some debts back through a payment plan rather than having it entirely discharged. We can, however, use a Chapter 13 filing within the 4-year period of time to protect a person from collection actions, including repossessions, foreclosures, and wage garnishments. It is a stopgap measure as ultimately there is not a discharge at the end of a plan. However, it can give you an opportunity to reorganize under the courts protection and make plans on how to ultimately deal with the debts.
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.
How Often Can I File Chapter 7
Bankruptcy can be very useful for a person who finds himself in severe financial distress with considerable debts he is unable to repay. Chapter 7 is often referred to as a total liquidation bankruptcy, although, in fact, not all debts are always dismissed through a Chapter 7. If you believe that bankruptcy is right for you, it is important that you work with a Bryan bankruptcy attorney who can represent your interests and guide you through the complexities of the process.
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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.
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How Long Do You Need To Wait Between Bankruptcies
While theres no law restricting how frequently you can file a bankruptcy, there are a few practical matters that can limit you.
First, if your filings are abusive or for the sole purpose of delaying or frustrating your creditors, a bankruptcy judge can stop you from filing. When this happens, a judge may dismiss your case with a one year bar, for example, restricting you from filing a bankruptcy petition within the next year.
Second, the bankruptcy code restricts how frequently you can obtain a bankruptcy discharge. In other words, the bankruptcy code restricts how often your debts can be forgiven. If you received a discharge in your first bankruptcy, then a set amount of time must pass before you can have your debts discharged by the courts again. So, while you can file for bankruptcy as many times as you need, you wont receive a second discharge until a certain amount of time has passed.
You may be wondering why you would want to file a bankruptcy if you cant have your debts forgiven, but there are many reasons you would do this. You may want to file for the purpose of establishing a payment plan, to repay mortgage arrears, or to catch up on missed car payments, for example.
Whether your eligible for a discharge in your second bankruptcy case depends on whether you received a discharge in the first case, what type of discharge you received, and what type of case youre filing. We discuss these rules below.
The following combinations are how long that wait is.
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Western District Of Michigan Requirements
The Western District of Michigan is divided into five divisions: Grand Rapids, Marquette, Kalamazoo, Lansing and Traverse City. Here, again, you can contact the court clerk to determine which division you will need to file in. The Western District also requires specific local forms in addition to the federal forms, including a separate Schedule C for a joint case, the Mailing Matrix, and an Asset Protection Report.
Liquidation Requirements For Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as liquidation bankruptcy. In Chapter 7, the borrower may be required to sell certain assets as a requirement of the case. Fortunately, not all of a debtorâs assets will be subjected to liquidation by the bankruptcy court. Florida bankruptcy law provides exemptions for many of the assets a debtor might own. If an asset is exempt from liquidation the borrower will not be required to sell the asset. To learn more about which assets may be protected in bankruptcy, .
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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.
Eastern District Of Michigan Requirements
The Eastern District of Michigan is divided into three separate divisions: Bay City, Detroit and Flint. You can determine which division is the one you should file in by contacting the court clerk using the contact information listen on the website. The Eastern District requires a number of local forms in addition to the federal forms, including a Bankruptcy Petition Cover Sheet, a Mailing Matrix and a Declaration Under Penalty of Perjury for anyone filing pro se.
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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.
How Often Can You File Chapter 7 Bankruptcy
There are specific time restrictions on when you can file certain bankruptcy cases. For Chapter 7, you can only receive a discharge of certain debts every eight years. There are also complex rules for filing Chapter 13 subsequently to a Chapter 7. In the video below, we talk about Chapter 7 in particular and how you should not have to file repetitive cases.
Jesse Barrientes: But after you file a Chapter 7, when can I file a Chapter 7 again?
David Siegel: You can only file a Chapter 7 and receive a discharge every eight years.
Jesse Barrientes: So if I get my discharge, theyre good for eight years. So Im not going to be able to discharge everything until eight years and a day.
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How Many Bankruptcies Can You File
If youre wondering how many years you need between bankruptcies, you need to know that it is possible to file for more than one bankruptcy in your lifetime. In fact, you can submit an unlimited number of bankruptcy cases unless a bankruptcy court orders otherwise, but you are entitled to a limited number of discharges.
There are various types of bankruptcy that individuals or spouses can file for, with the most common being Chapter 7 and Chapter 13. If youre wondering how often you can file chapter 8 or chapter 13, keep reading.
Subsequent Bankruptcies And The Automatic Stay
The basic rule in this area, as codified in the Bankruptcy Code, is relatively straightforward. The relationship between multiple filings and the Automatic Stay is:
- One Prior Dismissal: The Automatic Stay does not take full effect unless an Athens bankruptcy lawyer files a motion to extend the stay. Typically, judges grant these motions without asking questions or requiring hearings.
- Two Prior Dismissals: At this point, things are a bit dicier. Once again, the Automatic Stay only takes full effect if an Athens bankruptcy lawyer files an appropriate motion. Typically, the judge only grants this motion if the debtor shows good cause for the prior dismissal. Good cause could be almost any valid reason, such as a paperwork SNAFU or changed financial circumstances.
- More than Two Prior Dismissals: Even the best Athens bankruptcy lawyer might not be able to win a motion to extend the Stay in these circumstances. There is a strong presumption that the debtor is a serial filer.
Serial filers are people who try to cheat the system by filing multiple times without ever intending to follow through on their filings. Things become even more complex if different entities file bankruptcy over essentially the same debts.
Technically, Molly LLC is a first-time filer and eligible for the Automatic Stay. However, a judge might invalidate the Stay because of Mollys and Dexters prior filings.
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How To File Bankruptcy In Michigan For Free
In fact, because Michigan bankruptcy is so robust the District Courts have a lot of resources available for people who decide to file on their own, also known as filing âpro se.â In the Eastern District of Michigan Bankruptcy Court you will find resources including a Pro Se Law Clerkâs Office which offers free information, as well as a comprehensive online guide for pro se filers, but keep in mind that they cannot provide legal advice. Please also note that this information is specifically tailored to Chapter 7 bankruptcies in Michigan. If you would like to learn more about other options in individual consumer bankruptcy please feel free to read about the two chapters available to individual filers.
Keys to non-exempt building and vehicles
Divorce judgments and property settlement statements
Casualty insurance policies
The names, addresses and phone numbers of each holder of a Domestic Support Obligation
Any other specific document requested by the trustee, if requested in writing at least 7 days before the Meeting of Creditors
Should I File For Chapter 13 After Filing For Chapter 7
If you file Chapter 13 at least four years after filing Chapter 7, you can have a very low monthly Chapter 13 payment plan and receive a full discharge of all remaining balances after you complete the three- to five-year plan. For example, you could pay as little as $100 a month for three years inside of Chapter 13, paying very little to your creditors and yet still discharging the remaining balances owed.
This may be a good option for people who have student loan debt, certain types of income tax debt and child support payments to make, says Sean Fox, president of Freedom Debt Relief. These things cannot get discharged in a Chapter 7 bankruptcy.
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Advantages Of Chapter 13
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on âconsumer debts.â This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
Filing Chapter 7 After Receiving A Discharge In A Pennsylvania Chapter 13 Case
If your previous bankruptcy was a Chapter 13 case and you received a discharge, you need to wait at least six years from the filing date to file a Chapter 7. Only then will you be eligible for a discharge. In many cases, this is not that long of a wait. Because a Chapter 13 bankruptcy typically takes five years to complete.
However, there is an exception to this rule. If you paid all of your creditors in full through your Chapter 13 bankruptcy plan, you could file a Chapter 7 case immediately. Additionally, if you paid 70% or more owed to your unsecured creditors and the court deemed that your effort was in good faith, you do not have to wait six years to be eligible for a Chapter 7 discharge.
The above limitations only apply if you received a discharge in your Chapter 13 cases. If your case was dismissed or if you did not receive a discharge, you could file a Chapter 7 case immediately.
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What Happens If You File For Bankruptcy
Filing for bankruptcy is a legal process that will help the applicant either completely get rid of their debt or come up with a plan to repay their debt. The process begins with the debtor filing a petition with the bankruptcy court. As the debtor, you must complete several forms detailing personal information such as your assets, income, creditors, and expenses. It is important to note that during this process, creditors cannot collect on their debt. Once you have provided all the necessary information, the court will appoint a trustee who will ensure your secured debt is collected within the appropriate time.
This opportunity for a fresh financial start comes at a cost in legal fees and damage to your credit score. Filing bankruptcy will remain on your credit report for seven years or ten years . This process can make it difficult to obtain a mortgage or car loan in the future. It can also affect your ability to obtain employment or rent an apartment and increase your insurance rates. Since bankruptcy has long-term legal and financial consequences, consulting with a bankruptcy debt relief agency such as Debt Quest USA is highly encouraged. We will ensure all the paperwork needed is filled out correctly during this confusing and sometimes complicated process. Well also explain, in clear terms, exactly what happens if you file bankruptcy.
Can I File Chapter 7 If My Income Is Higher Than The State Median
Filing a Chapter 7 won’t be easy if your income is above the median income in your state. As of May 2015, the median income for an individual in Wisconsin is $43,666 and for a household of two it is $59,740. For a household of three people it is $69,600.
If your income is above the median, you are required to first complete and file the means test. This means test form is very complicated and you will need to hire an attorney who specializes in bankruptcy to help you complete the form and determine whether you qualify for Chapter 7. Those with high incomes who cannot file Chapter 7 are often still eligible under Chapter 13, so long as their debts don’t exceed the Chapter 13 debt limits.
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