The burden of massive debt or a financial emergency may occur more than one time in your lifetime. Although it is often possible to restore credit following bankruptcy, applying for bankruptcy again may be the desirable solution. If you’re in a difficult time, bankruptcy could be the accurate solution.
Although there’s no limit on the number of times you may declare bankruptcy, there are restrictions on the frequency you can make a filing. If you’ve had debts wiped out during bankruptcy, there’s an expiration date that is determined by the time you first filed, and is contingent on the nature of the bankruptcy filed..
If you’re considering filing a new application start by answering these questions:
- Did your bankruptcy result in the form of a discharge?
- What was the date for filing for bankruptcy?
- Did you file Chapter 7 or Chapter 13? And which chapter do you plan to file today?
Here are a few scenarios to consider for discharged bankruptcies , and how long you’ll have to be patient to file a new one.
The filing of Chapter 7 after a Chapter 7 discharge 8 years
If you filed an Chapter 7 that resulted in the discharge of your debts you have to wait at least eight years from when you filed it prior to filing Chapter 7 bankruptcy again.
Although Chapter 7 is typically the fastest method that offers debt relief, an eight-year timeframe to file a refile is the longest period between filings.
The filing of a Chapter 13 after a Chapter 13 discharge 2 years
If you’ve previously received a Chapter 13 bankruptcy discharge and you are planning to file a new bankruptcy then you have to wait two years from your previous filing date.
This is not the longest period of time between two filings, it’s also the most rare, as it is the most rare. Chapter 13 restructuring typically takes between three and five years to pay back. However, it is possible to repay a Chapter 13 can sometimes be cancelled earlier because of more extraordinary difficulties.
Filing Chapter 7 following the discharge of a Chapter 13 discharge: 6 years
Following the filing of a Chapter 13 discharge, the normal waiting period before you are able to start filing Chapter 7 is six years from the date of your previous filing.
The six-year waiting period can be exempted if you pay all of your debts unsecured completely in your initial Chapter 13 case or if you made more than 70% of the amount, the plan was made in good faith and you did every desirable effort to pay.
Filing Chapter 13 following the discharge of a Chapter 7 discharge: 4 years
Following a Chapter 7 discharge, you must wait at least four years after the date of filing before you are able to start a new case.
It is possible to skip the four-year waiting period and file a Chapter 13 as soon as possible, with the caveat that the new Chapter 13 will not be discharged. It is possible to use this to create an instalment plan for the debt that you were unable to eliminate in Chapter 7. When you use the steps of a Chapter 7 with a 13 to deal with the remaining debts in an arrangement for payment often referred to as a “Chapter 20.”
What happens if my prior case was not cleared?
Sometimes, the bankruptcy court disqualifies or closes a case without any discharge. This could occur when you fail to show up in court, did not comply with the court’s order, or dismissed your own case after creditors filed an application to pursue collection efforts. If your case is dismissed, you will need to wait for 180 days before filing another time. Be aware that filings after this date may not grant you an automatic staying of repossession, collection as well as foreclosure action. This means that you won’t be completely protected from creditors seeking the payment.
In other cases, the court may deny discharge of your debts during bankruptcy. Denials can be based on inability to give documents, concealing assets, or lying.
Find the benefit you require
The bankruptcy process is an intimidating one. Employing a qualified bankruptcy lawyer to assist you is generally suggested to assure the success of your bankruptcy filing and you’ll need to go through obligatory consultation with a bankruptcy attorney. A mistake on the forms or ignoring an important deadline could result in the case being rejected which could delay your progress.