In today’s poor economy, many repeat debtors are finding themselves wondering if they are able to file for a second (or even third) bankruptcy. The answer to that question depends on two primary factors: which type of bankruptcy was filed in the first case, and how long ago the first (or previous) filing occurred. In the article below, you will learn how it is possible to file for multiple bankruptcies.
There Isn’t an Automatic Way to Prevent Repeated Bankruptcy Filing
Thankfully for some habitual debtors, there’s no definitive way to prevent consecutive bankruptcy filings. However, the system should not be abused, and debtors shouldn’t use bankruptcy as a way to stay ahead of creditors. There are statutory requirements, rules and measures which must be followed by repeat filers. There is a fair amount of misconception concerning bankruptcy eligibility; therefore, it is in your best interest to call a bankruptcy lawyer for case-specific advice.
Debtors With a Prior Chapter 7 Filing are Under Stricter Rules
If someone filed a Chapter 7 case in the past, there is a mandatory eight-year waiting period before another filing can occur. If a debtor previously filed for Chapter 7 and now needs to file for Chapter 13 bankruptcy protection, they must wait four years from the filing date of the first Bankruptcy in Temecula. There are limited exceptions to the rule, and those in need of assistance should consult an attorney.
Regulations Apply to Subsequent Chapter 13 Filings
As a rule, people can file for multiple Chapter 13 cases. These typically involve a partial payment plan over up to a five-year period, with the average repayment being about $150 per month. Debtors cannot file for another Chapter 13 if their prior case was dismissed within the last six months due to the violation of a court order, or if the case was voluntarily dismissed. There are additional requirements for the discharge of a consecutive bankruptcy.
America’s bankruptcy laws are complex, and most people are ill-equipped to handle them alone. If you need help fulfilling the legal requirements for a Chapter 7 or Chapter 13 filing, you should call a bankruptcy attorney in your area today.
