Filing Chapter 7 After A Chapter 7 Discharge: 8 Years
If you had a Chapter 7 that resulted in discharge of your debts, you must wait at least eight years from the date you filed it before filing Chapter 7 bankruptcy again.
While Chapter 7 is typically the quickest form of debt relief, the eight-year period to refile is the longest waiting time between cases.
Can You File For Bankruptcy Multiple Times
There are no limits to how many times you canfile for bankruptcy, even if you have received a discharge before. If you want to file for bankruptcy again, you will need to wait a certain amount of time before you are able to discharge your debts again. If you file for bankruptcy before the time limits have passed, then it is likely you will not receive a full discharge.
Your ability to file another bankruptcy and thus receive a discharge are dependent on these things:
- The type of bankruptcy you have previously filed
- The type of bankruptcy you are seeking to file
- How your previous bankruptcy was finalized: either through discharge, dismissal, or dismissal with prejudice
- When you previously filed.
At Resnik Hayes Moradi LLP , we can evaluate your financial situation and advise whether you are eligible to file bankruptcy under any chapter of the Bankruptcy Code. From our offices in Los Angeles and Sherman Oaks, our attorneys have helped thousands of clients throughout Southern California overcome financial hurdles. We are happy to meet with you in a free consultation and answer all your questions about repeat bankruptcy filings.
How Often Can You File Bankruptcy In California With Different Angle
Unless the court orders otherwise, you can file again. When you file for a chapter 13 bankruptcy after getting a chapter 7 bankruptcy is often known as a chapter 20 bankruptcy.
You can file more than one bankruptcy in a lifetime. The law allows you to file chapter 7 bankruptcy once every eight years, up to a total of three times in your life. In california, you may file for chapter 7 bankruptcy a second time no sooner than 8 years after receiving a discharge on your first case.
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Can I Create A Lien On My Own Home
In a word, no. A homeowner cannot slap a lien on his or her own home just before filing for bankruptcy in the hope that this will reduce equity to below the homestead amount. This may be considered a fraudulent transfer or preference unless a preference defense applies. This is due to the fact that a homeowner cannot have a trust deed on his or her own home based on the doctrine of merger. 30 Cal. Jur. 3d Estates § 8.
Filing Chapter 7 After A Chapter 13 Discharge: 6 Years
After a Chapter 13 discharge, the standard waiting time before you can file Chapter 7 is six years from the previous filing date.
The six-year wait can be waived if you paid your unsecured debts in full in your original Chapter 13 case or if you paid at least 70%, your plan was made in good faith and you made your best effort to repay.
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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.
Newfoundland & Labrador Bankruptcy Exemptions
In Newfoundland and Labrador, property exempt from seizure in bankruptcy is set by the provincial government and applies to the equity in an asset. Equity is the difference between the value of the asset and what you owe on the asset.
Example: If you have a car worth $6,000 and you still owe $4,000 on the loan, the equity you have in the car is $2,000. In Newfoundland and Labrador, the exemption for a car is $2,000. In this case, you would be entitled to keep the car and your unsecured creditors cannot take this from you when you file for bankruptcy.
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There Are No Restrictions On How Many Times You Can File For Bankruptcy
There are currently no restrictions as far as how many times you can file for bankruptcy. That said, there are limits on how many times you can obtain a bankruptcy discharge. The discharge is the part of the process that actually eliminates liability for debts.
Whether or not a person is eligible for another bankruptcy discharge depends on several factors, including what type of bankruptcy they previously filed for and what type they are attempting to file. For example, if a person filed Chapter 7 and had their debts discharged, they cannot file Chapter 7 again for eight years.
If they filed Chapter 13 then the amount of time they would have to wait is not so cut and dry. In most cases, a Chapter 13 bankruptcy will take between three and five years to be fully discharged. This is much longer than the four to six months a person can expect when filing Chapter 7. That said, once the Chapter 13 is discharged, a debtor can then refile for Chapter just two years later.
The third option is a person who filed for one option, had it discharged, and now wants to file another type of bankruptcy. In this case, if a person filed Chapter 7 and had it discharged, they would need to wait four years from the initial filing date of Chapter 7 to be eligible for a Chapter 13 bankruptcy.
Means Test Options: Median Income Vs Full Means Test
To be eligible to file for bankruptcy under Chapter 7, you must satisfy the Means Test. The easiest way to qualify for Chapter 7 is to have an income below the state median. Even debtors whose household income is above the state median may qualify for Chapter 7 by going through the more thorough, full Means Test.
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California Homestead Exemption On Property Acquired In The 1215 Days Before A Bankruptcy
Note that some bankruptcy trustees might argue that this is improper under some circumstances. For example, 11 U.S.C. Section 522, absent certain exceptions, electing to exempt property under State or local law, a debtor may not exempt any amount of interest that was acquired by the debtor during the 1215-day period preceding the date of the filing of the petition that exceeds in the aggregate $125,000 in value in real or personal property that the debtor or a dependent of the debtor uses as a residence orreal or personal property that the debtor or dependent of the debtor claims as a homestead. Note that under 11 U.S.C. Section 522: For purposes of paragraph , any amount of such interest does not include any interest transferred from a debtors previous principal residence into the debtors current principal residence, if the debtors previous and current residences are located in the same State. For example, the Ninth Circuit held that homestead is not subject to the $125,000 cap contained in Section 522, because he purchased the underlying property interest more than 1215 days before the bankruptcy filing. In re Greene, 583 F.3d 614, 625 .
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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You May Make Surplus Income Payments
When you file for bankruptcy, you must do the following:
- disclose to the LIT information about all of your assets and liabilities
- advise the LIT of any property that was sold or transferred in the past few years
- surrender all your credit cards to the LIT
- attend the first meeting of creditors
- attend two counselling sessions
- advise the LIT in writing of any address changes
- if required, attend an examination at the Office of the Superintendent of Bankruptcy and
- assist the LIT as needed in administering your estate.
You may be required to make additional payments to your LIT for distribution to your creditors.
In addition to paying the LIT’s fees, you may be required to make additional payments to your LIT for distribution to your creditors. These are called surplus income payments.
Each month during the bankruptcy process, you must submit a copy of your pay stubs and proof of other income to the LIT. The LIT then calculates your surplus income.
Surplus income is the part of your earnings that exceeds the amount of income a family needs to maintain a reasonable standard of living. This amount is set by the OSB annually. The larger your family, the more you are allowed to keep the more you earn, the more you are required to contribute.
In other words, if your household income exceeds the level set by the OSB, then you must make additional payments to your LIT during your bankruptcy.
Take Bankruptcy Course 2
The Bankruptcy Code requires everyone to take this course after filing bankruptcy even if there is nothing someone could have done differently to avoid it. Itâs important to take this course from one of the approved providers, and while you don’t have to get it done before your 341 meeting, you certainly can.
Once you have completed bankruptcy course 2, your certificate of completion will need to be filed with the bankruptcy court. Make sure you ask your course provider whether they will file the certificate in your Chapter 7 bankruptcy case for you, or if you are required to do it yourself.
If you donât complete this course, you will not receive your discharge however, the case administration continues. Since the discharge is the main benefit of filing Chapter 7 bankruptcy in California, it is important not to forget this step.
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Which One Should I Choose
Chapter 7 is, by far, the more popular form because its cheaper, quicker and effective at relieving responsibility for debt if you qualify! And thats a big if. You must pass a means test, meaning your disposable income is under the median income in your state. If you dont qualify for Chapter 7, you can always fall back on Chapter 13.
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Avoiding Bankruptcy Bankruptcy Legal Help Debt Collector
As many times as you need to within certain time limits. Bankruptcy law provides for an automatic stay of debt collection actions.
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Bankruptcy Exemptions For Farmers
Up to 160 acres of land is exempt if your principal residence is located on that land and is part of your farm. Any personal property necessary for your farming operations over the next 12 months is also exempt from bankruptcy. For more information about bankruptcy exemptions in Alberta, please speak to a local Licensed Insolvency Trustee.
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How Often Can You File For Bankruptcy In The State Of California
Even as unemployment continues to go down, many people are living with more debt than they can handle. When this happens, they often consider their bankruptcy options. At The Law Offices of Paul Y. Lee we can provide a free consultation so you can find out if bankruptcy is right for you. In the meantime, we can cover a common question people have: Can they file for bankruptcy more than once? And if so, how much time must pass between filings?
Homestead Exemption Protections Against Judgment Creditors
California law also protects homeowners via the homestead exemption when judgment creditors seek to collect by selling the debtors home. These laws would thus apply in state court proceedings. This is because the interest of a natural person in a dwelling may not be sold under this division to enforce a money judgment except pursuant to a court order for sale obtained under this article and the dwelling exemption shall be determined under this article. Cal. Code Civ. Proc. Code § 704.740. When this occurs, the court will hold a hearing to determine if the homestead exemption applies, the amount of the homestead exemption, and the value of the property such that a sale will produce a payment to the creditor. Cal. Code Civ. Proc. § 704.780.
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Discharging Debts In Bankruptcy
A bankruptcy discharge releases a debtor from being personally responsible for certain types of debts. So, after a bankruptcy discharge, the debtor is no longer legally required to pay any debts that are discharged.
The discharge prohibits the creditors of the debtor from collecting on the debts that have been discharged. This means that creditors have to stop all legal action, telephone calls, letters, and other type of contact with the debtor. This prohibition is permanent for the debts that have been discharged by the bankruptcy court.
You cannot discharge all debts in bankruptcy. Some of the most common debts that you cannot get rid of in bankruptcy are debts from child or spousal support, most student loans, most tax debts, wages you owe people who worked for you, damages for personal injury you caused when driving while intoxicated, debts to government agencies for fines or penalties, and more.
How Will The New California Homestead Exemption Protect Homeowners
Before AB 1885 went into effect on January 1, 2021, the homestead exemptions in California were $75,000 for a single homeowner, $100,000 for a married couple, and $175,000 for families who met specific requirements. However, AB 1885 has changed CCP § 704.730 to instead make the homestead exemption the greater of $300,000 or the countywide median sale price of a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed $600,000.
To better understand what this means, the following are projections for a few of Californias major metropolitan areas, though these numbers are always changing:
- Los Angeles County: $600,000
- Orange County: $600,000
- San Diego County: $600,000
- San Francisco County: $600,000 (Estimated $1,444,000 Median
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Getting A Lawyer To Help You With Your Bankruptcy
Bankruptcy is a specialized area of law that is very complex. And the issues are not always apparent or simple. The bankruptcy laws changed in October 2005 to discourage many people from filing for bankruptcy. So the law became more complicated. And there are more situations where a mistake can result in your case getting dismissed. If your case is dismissed, the bankruptcy court often imposes a penalty of 180 days before you can refile, and in this time period a lot can happen. This is why it is so important to have a lawyer advise you and help you with your bankruptcy.
Find a lawyer who can help you work through the issues, alternatives you may have, and consequences of your choices.
- Pick a lawyer with whom you are comfortable, one who will allow you to ask questions and give you responses that you can understand.
- Pick a lawyer who either specializes in bankruptcy or does a large part of his or her practice in the field.
- Ask questions until you understand what your choices are.
- Don’t be afraid to interview a lawyer and leave without hiring him or her.
If you decide to represent yourself in bankruptcy court, read a guide for Filing for Bankruptcy Without an Attorney.
To find a good bankruptcy lawyer:
- Check state bar groups and specialization/certification programs for bankruptcy lawyers in your community.
- Ask other lawyers or tax preparers you know for recommendations.