A financial misfortune can strike at any time, and bankruptcy can offer a powerful tool for resolving unmanageable debt. Unlike many other debt relief options, there is no limit on how many times you can file for bankruptcy and receive a discharge of eligible debts. However, there are rules regarding how long you must wait between filings. This article discusses how those timings vary depending on the type of bankruptcy you filed and whether or not your previous case was successful.
You might need to file for bankruptcy more than once if you experience multiple financial hardships in quick succession or are continually faced with wage garnishment, creditor harassment or other lawsuits. In these situations, bankruptcy can provide the legal protection you need to get a fresh start. However, it’s important to understand how multiple bankruptcies can impact your credit score. Consider contacting Cain and Herren to help answer your questions regarding filing for bankruptcy.
The most common reasons for a second bankruptcy filing include the inability to afford payments on high-interest loans, a job loss or unexpected medical expenses that put you behind on bill payment. You may also face the inability to pay your mortgage and other real estate taxes, or you may have racked up credit card debt from spending sprees during a time of crisis.
For many people, bankruptcy can be a last-resort solution. Although no one wants to declare bankruptcy, it can be a necessary step to rebuilding your credit and getting out from under debilitating debt. Bankruptcy impacts your credit score and can make it difficult to access new loans, such as a home or car. However, you can still qualify for some loan programs and debt management services after a bankruptcy.
Filing for bankruptcy can be complicated, especially if you’ve already filed once before. However, if you have the right information and guidance, you can file for bankruptcy again even if you’ve received a discharge in the past. To avoid losing the benefits of a court-ordered injunction called an automatic stay, you must follow statutory bankruptcy wait times designed to prevent abuse of the system.
The most commonly used bankruptcy types are Chapter 7 and Chapter 13. In a Chapter 7, you must sell non-exempt assets to pay your debts, while in a Chapter 13, you can keep your property while following a debt repayment plan over three to five years. You cannot file for a Chapter 7 bankruptcy immediately after a previous bankruptcy, but you can file for a Chapter 13 and then quickly follow it up with a Chapter 7 to address unsecured debts not covered by the discharge in the former case. This strategy is often referred to as a “Chapter 20 bankruptcy.” Before you attempt this, however, you should speak with an experienced bankruptcy attorney for guidance.
Cain & Herren, ALC
2141 W Vineyard St, Wailuku,
HI 96793, USA
+1 (808) 242 9350
cainandherren.com
