How soon can you file for Chapter 7 again?
Some Atlanta residents have gone through a Chapter 7 bankruptcy filing in the past five years. Ever since the Great Recession in 2008, people have been struggling; and while things are getting better, some people are still trying to get their finances in order. May it be a crushing loan or a tumultuous job situation, some people need bankruptcy protection — even after filing for bankruptcy recently.
That doesn’t mean you are taking advantage of the system. Many people fall on very hard times, and they require multiple bankruptcies to get out of it. This is why bankrtupcy protection exists.
However, there are limitations. You can only file a Chapter 7 bankruptcy filing once every eight years. So what can you do if you want to enter liquidation, potentially have some of your debt discharged and enter bankrtupcy again, but you already did so five, or six, or seven years ago?
Well, while Chapter 7 may be off the table, a Chapter 13 bankruptcy filing could be utilized. It could even bridge the gap between your current financial troubles and the next date you are available to file a Chapter 7.
A Chapter 13 filing is considered a “repayment” plan. You can reorganize your monthly payments to fulfill your creditors. Sometimes, these repayment plans can leave the in-debt party with a very small bill to pay.
As with any bankruptcy case, you should consult an experienced attorney so that you are best equipped to appropriately deal with your financial situation. Every case is unique, and there could be little wrinkles to a person’s financial situation that necessitate legal analysis.
Source: Fox Business, “Too Soon to File for Bankruptcy Again?,” Justin Harelik, Aug. 14, 2013