Was Your Bankruptcy Case Dismissed With Prejudice Restrictions
A bankruptcy court can prohibit you from filing another bankruptcy case if the court dismisses your previous bankruptcy with prejudice. Dismissed with Prejudice typically means that you failed to obey the courts orders or tried to abuse the bankruptcy system.
If this happens, a bankruptcy court can prohibit you from filing for another bankruptcy for a longer period of time than those specified above. A court is also able to forever preclude you from discharging debts that might have been discharged in the case that was dismissed with prejudice.
Bankruptcies Can Be Revoked Seek Legal Advice
Bankruptcy courts have the right to revoke a bankruptcy or discharge. There are specific conditions for the various types of bankruptcy. Chapters 7, 11, 12 and 13 all have their own unique reasons for why they can be revoked.
Revocation of Chapter 7
A trustee, creditor, or the U.S. trustee may submit a request to the bankruptcy court that a discharge or bankruptcy be revoke based on an allegation against the debtor.
Explanations of the Reasons Bankruptcies Can Be Revoked:
If you are considering filing for bankruptcy again, then you should take advice. Youll need to file with the court and must be certain that you are filing correctly and discharges are applicable.
You should also be aware of the With Prejudice rulings, and how they affect your ability to file for bankruptcy.
AllLaw has excellent resources online to help you navigate this tricky legal procedure. They have an interactive calculator that can help you establish the best next step based on the amount of money you owe. Their resource also clearly and simply explains the various types of bankruptcy and what you can do if the court has dismissed a previous case with prejudice.
Previously Filed Chapter 13 And Filing Chapter 13 Again
If you received a discharge in Chapter 13,;you will need to wait two years from the date you filed that case before you can file another Chapter 13 and receive a discharge.;It usually takes three to five years for the repayment plan in a Chapter 13 to be discharged. Because of this, once your first Chapter 13 is closed, you can immediately be eligible for discharge in a second Chapter 13 filing.
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How To Avoid Filing Bankruptcy More Than Once
As we pointed out initially, most people want to avoid filing for bankruptcy entirely. Fortunately, there are other debt relief options available, such as debt settlement and debt management, that are worth considering, especially if you dont qualify for Chapter 7 bankruptcy.
If you must file and are required to pay back some of your debt under a payment plan, youll want to be certain you will have reliable income for the duration of your payment plan and that the monthly payments are manageable.
How Many Times Can You File Bankruptcy
There are time limits between filings, but there is no limit on the number of times you can file. Theoretically, someone with faulty debt-management skills could file a dozen or more bankruptcies in their lifetime.
That would make for some tough financial sledding, but at least they might make the Guinness World Records for Worlds Lowest Credit Score.
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Let An Expert Bankruptcy Attorney Handle It
Having made thousands of courtroom appearances our;Kansas City bankruptcy lawyers;are equipped to handle the most complex cases, both personal and small business.
Weve facilitated so many bankruptcy cases that weve learned how to get the job done quickly, effectively and honorably. Experience will be your greatest ally in your bankruptcy case. At Kentner Wyatt, LLC our experience is at your full disposal.
Debtcom Howard Dvorkin Responds
Your story is complicated, Jo, but its not unusual. For two decades, Ive seen Americans sink slowly into debt as if it were quicksand. They grab at anything they think will save them.; That does slow down the inevitable; but it doesnt stop it.
I can give you some information that will make it easier to understand all the factors at play here. However, I recommend that you get in touch with someone that can help you understand how all of this applies in your specific financial situation.
#1: The credit report notation for your first bankruptcy should have fallen off years ago.
If you filed for bankruptcy in 2006, then the latest that penalty should have remained on your report is 2016. Even if you filed for Chapter 7, the public record notation should only remain for 10 years.
So, at a minimum, you should contact the credit bureaus to dispute why the item is still showing up on your reports. I recommend going to annualcreditreport.com to check your reports with all three bureaus .
If you dont know how to make a dispute, Debt.com offers a free guide to help you along.
#2: Enough time has passed that you can legally file bankruptcy again
The maximum amount of time that needs to pass between filings is 8 years. That means youre well past the point of time required between your first and second discharge. You should be able to file for Chapter 7 or Chapter 13 without the time limit between your filings being an issue.
The bottom line
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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.;;
Complaints Seeking Revocation Of Discharge Will Require Retaining Counsel
Keep in mind that the mere filing of an adversary proceeding ;seeking to revoke the discharge will require hiring an attorney to answer the allegations of improper conduct. If these allegations are not addressed in a timely fashion, the debtor will lose their discharge by default.
The possibility that a bankruptcy discharge can be revoked highlights the importance of;full disclosure to your bankruptcy attorney. You must inform your bankruptcy attorney of;all assets and debts in order to ensure that your discharge is not subsequently challenged.
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Your Bankruptcy Situation Will Be Unique To You
Everyones debt situation is different.; You must inform your attorney of any prior bankruptcy filing in the United States, regardless of where it was filed, as this may affect your ability to obtain bankruptcy protection or a discharge. Failing to tell your attorney of prior filings also impacts that attorneys ability to strategize and get you the best result you can hope for.
The Law Offices of David M. Offen have handled over 11,000 Chapter 7 and Chapter 13 Bankruptcy cases covering nearly every possible type of situation.; You can call Attorney David M. Offen to discuss your specific situation and get advice on how Bankruptcy can help you turn your financial life around, even if you have already filed for Bankruptcy relief in the past.
What If You Need To File Bankruptcy Again
In filing for bankruptcy, the goal most people have in mind is to have their debts eliminated. Your debts;get discharged at a discount, after you pay your creditors a portion. You sell;nonexempt;assets in a Chapter 7 bankruptcy or complete a repayment plan in a Chapter 13 bankruptcy.
But just as you didnt plan on needing bankruptcy before, unexpected crises can strike at any time and you could easily find yourself deep in debt again. Health problems, unemployment, divorce, or business failures could cause you to fall behind on your bills. Bankruptcy;is still option, but you may need to wait to file and have your debts discharged.
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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.
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.
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Typical Chapter 13 Bankruptcy Case
What does a successful Chapter 13 bankruptcy applicant look like?
Consider Steven and Cathy, a married couple with a home that carriers a $150,000 mortgage. Steven works, Cathy doesnt, but they file jointly for Chapter 13 protection. The couple also owes $7,000 on a car loan and has nearly $20,000 in credit card debt.
Two weeks after filing a petition, they submit a Chapter 13 repayment plan that shows how Stevens income can be used to make mortgage and car payments, and can repay part of the unsecured credit card debt. Their plan includes three categories of debt: priority, secured and unsecured.
Priority claims, which must be fully paid, include the cost of the bankruptcy proceeding, some taxes and child support. Secured debts are those with collateral, like a house or a car, also must be paid in full according to the bankruptcy plan. Repayment of unsecured debts, like money you owe on credit and charge cards, is flexible. The judge will review your income and the length of the repayment plan, then decide how much youll owe your unsecured creditors. The amount could range from nothing to complete repayment.
For Steven and Cathy, this means paying all the court costs and whatever back taxes they might owe. It also means they will become current on their mortgage and car payments. But the judge will decide how much theyll need to pay the credit card companies.
Is Filing Chapter 13 Worth It
Bankruptcy is a serious financial measure, but it might be an option for people struggling with debt. Chapter 13 bankruptcy could make sense if you have steady income and want a chance to keep your home or car. Theres no guarantee the immediate relief will be worth the long-term consequences of the 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 “consumer debts.” 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.
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.
Did You File For Chapter 7 Or Chapter 13 Bankruptcy
Federal law sets the timing between a bankruptcy discharge and a subsequent bankruptcy filing. This timing is based on the type of bankruptcy for which you received a discharge and the type you now;wish to file.
You will wait the longest if you file Chapter 7 bankruptcy following a Chapter 7 or 13 discharge. You must wait eight years if your debts were discharged under Chapter 7 and you file for Chapter 7 again. A gap of eight years must exist between the day your debts were discharged and the day you file again.
You must wait six years if you received a Chapter 13 discharge and want to file for Chapter 7. The gap of time between a Chapter 13 discharge and filing Chapter 7 must be a minimum of six years. You wont need to wait six years if you paid the unsecured debts associated with your Chapter 13 repayment plan. The same applies if you paid 70% of your unsecured debts made your best effort to abide by the plan.
You wont need to wait as long if you seek a Chapter 13 bankruptcy after receiving a bankruptcy discharge. You must wait four years between the day you received a Chapter 7 discharge and then file for Chapter 13. The wait is two years if you filed Chapter 13 and want to file for Chapter 13 again. Because Chapter 13 repayment plans last three or five years before discharge, you can file Chapter 13 again immediately after discharge. If you complete payments under your repayment plan before the three or five years, you can immediately;refile;another Chapter 13.
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.
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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.
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.
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