| Yes, You Can File Bankruptcy Again! |
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| Written by K. Hunter Goff |
| Monday, 08 November 2010 17:30 |
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I, like many other Orlando bankruptcy attorneys, do not like repeat customers. Referrals are the backbone of my business, but a repeat customer is someone who, after receiving bankruptcy relief once, has met with financial troubles again. While I'm sorry to see them back in a difficult situation, I am happy to say, I can usually help my client get debt relief again.
I, like many other Orlando bankruptcy attorneys, do not like repeat customers. Referrals are the backbone of my business, but a repeat customer is someone who, after receiving bankruptcy relief once, has met with financial troubles again. While I'm sorry to see them back in a difficult situation, I am happy to say, I can usually help my client get debt relief again. One of the common misconceptions people have, in fact, is that a person can only file bankruptcy once in a lifetime. This is not true. When I do have a former client come in to see me again about filing bankruptcy a second, or third time, I explain to them what I will explain here today. Few people have a crystal ball allowing them to foresee and prepare for a future financial crisis. Bankruptcy laws take this into consideration and continue to provide debt relief by not restricting the number of times one can file bankruptcy. Life throws many curve balls not limited to loss of employment or serious illness incurring large hospital bills. Filing bankruptcy again may be the best option. Every 8 years you can file a Chapter 7 type of bankruptcy under Bankruptcy Code section 727(a)(8). If less than 8 years have passed since you filed a Chapter 7 bankruptcy, you cannot file again under Chapter 7. If it's been at least 4 years since you filed your Chapter 7, you may file a Chapter 13 instead. This is covered in Section 1328(f)(1). If your last case was a Chapter 13, then you must wait 6 years from the time you filed the Chapter 13 before you can file a Chapter 7. However, you can still get a Discharge from a Chapter 7 case filed within the 6 years from filing the previous case if the Chapter 13 payment plan paid either 100 percent of all allowed unsecured claims or paid 70 percent of such claims, was proposed in good faith, and represented your best efforts. Section 727(a)(9) is where to go for this. If two years have passed since your last Chapter 13 case, you may file another Chapter 13 bankruptcy. Keep in mind, many people file multiple Chapter 13 cases even if they have not waited the required 2 years. Usually, these filings are done in connection with trying to save a home from foreclosure. While these "serial filings" are generally frowned upon, if you can show a "change of circumstances" from one case to another that would argue in your favor for a successful outcome of the most recently filed case, and if the Judge agrees with you, then you may go forward with the filing. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Each situation is unique. Speaking with experienced Orlando bankruptcy attorneys will help with your decision to file bankruptcy or not. An experienced attorney can help with the timelines for all these scenarios. |