Picking up from where 6 Facts to Know about Filing for Bankruptcy Again (Pt. 1) left off, here are some more important facts you should be aware of when you are considering filing for bankruptcy again.
Fact 3 – The time limits for filing for bankruptcy again will depend on whether you are filing for a different type of bankruptcy the second time around.
When a person wants to file for a different type of bankruptcy than he pursued in his first case, then different time limits apply as follows:
- Chapter 13 first, Chapter 7 second – If a person would like to file for Chapter 7 in his second bankruptcy petition (and his first bankruptcy case was a Chapter 13 case), then he will have to wait at least 6 years before he can receive a discharge in a Chapter 7 case.
There are, however some exceptions to this 6-year waiting period. For example, if all of the outstanding debt in the first Chapter13 case has been repaid or at least 70 percent of this debt has been repaid and your repayment plan was in good faith, the 6-year waiting period may be lifted.
- Chapter 7 first, Chapter 13 second – If a person would like to file for Chapter 13 bankruptcy (and his previous bankruptcy case was a Chapter 7 case), then he will generally have to wait 4 years before his second case will be accepted by the courts.
This order, however, can get complicated if there are issues with the court accepting a person’s proposed Chapter 13 repayment plan in the second case. Specifically, if the second filing is within 8 years of the first filing and the court has rejected a repayment plan, there may be issues converting the case to a Chapter 7 bankruptcy.
The bottom line here is that filing for a different type of bankruptcy in a second case can be a complicated endeavor, so it’s best to work with an attorney in these cases to optimize your chances of a successful filing the second time around.
Fact 4 – Filing for bankruptcy again can be useful even if a person can’t get his debt discharged.
In many cases, filing for bankruptcy – whether for the first or a subsequent time – is a powerful way to get a substantial amount of debt discharged. However, even if a bankruptcy case won’t result in a discharge (because, for instance, a person has not waited the requisite amount of time before filing for bankruptcy again), it can still be an extremely helpful option in that it can offer a person some powerful court protections.
Specifically, by filing for bankruptcy again, a person can be protected by the court’s automatic stay, which can:
- Prevent creditors from attempting to garnish a person’s wages
- Prevent creditors from initiating foreclosure proceedings on a person’s home
- Stop creditors from taking action to file a lawsuit against that person
- Stop creditors from trying to repossess a person’s property.
Be sure to look for the upcoming conclusion to this blog!
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