How Many Years Before Filing Bankruptcy Again
In a Nutshell
You can file more one bankruptcy in a lifetime. How many times depends on how long it's been since your concluding defalcation instance and what blazon of bankruptcy you filed. We'll break it down for you.
Have you filed bankruptcy in the by simply are faced with a fiscal situation that you can't resolve despite your best efforts? If yous're facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or any other type of debt y'all're no longer able to pay, yous can ask the court for bankruptcy protection a second time.
Know that y'all're not solitary. A 2006 paper on a institute that 8% of bankruptcy filers end up filing defalcation again. [ 1 ] The 2005 changes to the Bankruptcy Lawmaking, intended to reduce overall filings, have not had much of an bear upon on this number. [ two ]
In this article, we'll look at just how many times someone can file bankruptcy depending on the blazon of defalcation and the amount of fourth dimension that has passed since the kickoff case. We'll as well take a look at what other debt-relief options are available if filing bankruptcy is non an option and whether a bankruptcy chaser can assistance y'all file a second defalcation sooner.
Bankruptcy is a legal way for individuals who can no longer afford to pay their debts to get permanent debt relief through a bankruptcy discharge. The Bankruptcy Code provides for three types of consumer bankruptcies known every bit Affiliate seven bankruptcy, Chapter xi bankruptcy, and Chapter xiii bankruptcy.
Different Types of Bankruptcy Explained
A Chapter seven defalcation eliminates nearly debt, including credit bill of fare debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter vii bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 defalcation allows you to go along all of your property every bit long as the monthly repayment plan pays for the value of your assets. The debts that don't get paid equally office of the repayment plan are discharged one time the programme has been completed. The discharge of your debts gives you the fresh start you demand.
The Affiliate 11 bankruptcy procedure provides similar relief to that provided in Chapter vii and Chapter 13, but is generally reserved for filers with businesses or meaning assets and is a lot more expensive than even a Chapter 13 bankruptcy. This article will focus specifically on Chapter vii and Affiliate 13 bankruptcy.
How it works
At that place is no limit to how many times someone can seek bankruptcy protection. To prevent an abuse of the bankruptcy process, the Defalcation Code requires a sure corporeality of time to laissez passer between cases that result in a discharge. This prevents people from running up high credit card balances and other types of debt and filing bankruptcy every few years.
What are the Time Limits
The type of defalcation filed in the previous case determines the fourth dimension limit between cases. The time starts to run on the date the prior case is filed with the bankruptcy court. The engagement the discharge was entered doesn't thing.
Chapter 7 bankruptcy ➡️ Affiliate 7 bankruptcy: viii years
This is the longest amount of time between cases required by the Bankruptcy Lawmaking. Chapter seven provides the quickest form of debt relief through a bankruptcy filing and doesn't crave the filer to complete a repayment plan before getting their bankruptcy discharge.
Chapter 7 bankruptcy ➡️ Chapter 13 bankruptcy: iv years
It is possible to file Chapter 13 bankruptcy soon subsequently receiving a Affiliate 7 discharge, the filer just won't be eligible to receive a Affiliate 13 discharge in the 2d case. Then, someone who successfully discharges their unsecured debts through Chapter seven tin can file a Chapter 13 bankruptcy to pay off taxation debts or other types of debt that survived the prior instance.
Chapter 13 defalcation ➡️ Chapter vii bankruptcy: vi years
This waiting flow tin can exist waived if you paid back 100% to your unsecured creditors in your Chapter xiii plan (or in some cases where you paid back 70% of your full debts) and the original instance was found to be in good faith. Plus, since a Chapter 13 repayment plan can take upwardly to v years to complete before resulting in a discharge, it'southward possible to file Chapter 7 bankruptcy almost ane year after receiving a Chapter 13 discharge.
Chapter 13 bankruptcy ➡️ Affiliate 13 bankruptcy: two years
If you previously filed a Chapter 13 case and received a discharge and are looking to file a Chapter xiii case over again, you have to look at least ii years from the filing date of the first example before filing the second instance. This is pretty rare. The minimum length of a Chapter 13 repayment plan is 3 years. Receiving a discharge before completing a iii year program is possible merely if an unexpected hardship makes completing the program impossible.
Echo Chapter 13 bankruptcy filings are sometimes used to keep the payments on the filer's student loans or tax debts manageable. Since these types of debts can't exist discharged, the fourth dimension limit betwixt cases is less important.
Can a bankruptcy attorney help me file bankruptcy sooner?
A bankruptcy attorney can't help you get effectually the fourth dimension limits, only they may be able to help yous file a different blazon of defalcation than the one you filed before and confirm the earliest date your 2d case can be filed. This is specially true if you filed a Chapter 7 defalcation but didn't get a belch. Only a bankruptcy lawyer can requite you legal advice about how soon your 2nd bankruptcy tin can exist filed. They can likewise help you get a courtroom society to make certain your automated stay doesn't elapse before your belch is entered.
Do I have other debt-relief options?
If you are in between bankruptcy filings and unable to file another bankruptcy, you may take to consider other debt-relief options similar debt consolidation or debt settlement. These alternatives tin be catchy to navigate, and so start by getting a costless evaluation of your financial state of affairs through credit counseling. Also, remember that most law firms handling bankruptcy matters offer free consultations.
Let's Summarize...
In brusk, you tin file more one defalcation in a lifetime. How many times depends on how long it's been since your last bankruptcy case. If yous previously filed a Affiliate seven bankruptcy and want to file Chapter vii again, the time period is eight years from when you last filed. If you filed Chapter vii and want to file a Chapter thirteen, the fourth dimension flow is four years from when you lot filed Chapter 7. If you filed a Affiliate xiii and want to file another Affiliate 13, the time period is two years from when you last filed. And, if you filed a Chapter 13 and want to file a Chapter 7 the time period is six years from when y'all filed.
If yous're eligible to file Affiliate 7 bankruptcy, but tin can't afford to hire a bankruptcy chaser, Upsolve's gratuitous tool tin can help you lot prepare your bankruptcy forms and complete the bankruptcy process on your ain.
Sources:
- American Bankruptcy Institute. ( 2006 ). Bankruptcy Repeat Filings. Law Review, 14(ane), 169-200 .
- Miller, Michelle M. & Miller, L. ( 2008, June ). Repeat Filers Under the BAPCPA: A Legal and Economical Analysis. Norton Annual Survey of Bankruptcy Police, p. 509, 2008 . Retrieved August 4, 2020, from https://ssrn.com/abstruse=1983377
Source: https://upsolve.org/learn/how-often-can-you-file-bankruptcy/