Just how many times should you declare chapter 7 bankruptcy?
If you have gone through bankruptcy once and your situation after the first case seems unyielding, you may try to see whether you can get a second discharge. How often can you declare Chapter 7 bankruptcy? Actually, the answer to this is as many times as you would like. However, there are limitations, especially where you received a discharge. If you have filed a bankruptcy under Chapter 7 and received a discharge within the past 8 years, you will not be accorded another discharge if you re-file.
Before we go into the depth of what governs multiple bankruptcy filings, let’s look at some of the reasons why you should file for bankruptcy for a second (third, fourth, etc.) time.
Benefits of filing for bankruptcy under Chapter 7 again
Filing for bankruptcy Chapter 7 can mean great benefits for you since it can enable you to get a discharge if you were not granted one at first. However, it is important to understand that the time limits placed are for the discharge and not for filing. Hence, to get the most out of the case, it is best to wait a little longer from the time of your previous filing to file again. This is because the law demands that if you were given a discharge on a previous case under Chapter 7, you need to wait for about 8 years to elapse before going for another filing. If you file soon after your last case, you will not receive a discharge, which will be a waste of resources and time.
How often can you declare Chapter 7 bankruptcy? One advantage you may have when filing for bankruptcy could be the opportunity to enjoy the perks of “Chapter 20 bankruptcy”. If you just received a discharge under Chapter 7, you can apply for chapter 13 immediately. This will give you the protection you need to pay, perhaps, a tax debt under a Chapter 13 bankruptcy plan. The benefits you get from chapter 20 will depend on your personal situation and the provisions of the state law. That is why it is important to arm yourself with the best attorney to furnish you with the necessary information on how this could work either for or against you.
Filing for bankruptcy Chapter 7 under various circumstances
If you previously filed for the Chapter 7 bankruptcy and did not get a discharge, you can file again. There will be no limitations regarding the second discharge. Simply provide the relevant information and disclose all the financial details required by the court and your case will turn out successfully. On the other hand, where the case was dismissed by the court due to failure to honor a particular court order, you have to wait for 180 days before you can make a comeback in the courtroom. The waiting period applies also if you deliberately dismissed the case, after the lending institution lodged a motion for relief from the set bankruptcy stay. Other guidelines can govern the case, based on the bankruptcy stay.
If in the first case, the courts did not give you a discharge, you are allowed to file once again. However, the discharge for the second case will not be allocated based on the debts you listed on your first case. This will be another case altogether. Seeking the counsel of a qualified lawyer is advised. How often can you declare Chapter 7 bankruptcy? There are no limits on filings, but the number of time you file will affect the protection that you receive from the case.
My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.
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