What Are The Consequences Of Filing Chapter 7 Bankruptcy Twice
Be Aware Of The Rules If You File For Bankruptcy For a Second Time
You are free to file bankruptcy twice under Chapter 7, but there are some rules to consider, including the time between filings. Those rules depend on many circumstances, for example, if the first case was released. In that situation, the waiting period must be two years minimum or even longer depending on the type of bankruptcy.
What Factors Affect The Waiting Period To File Bankruptcy Again?
Some of the factors that affect the waiting period are:
- If the first bankruptcy was discharged or dismissed.
- The type of bankruptcy you first registered.
- The type of bankruptcy for your second time.
- The time that passed between the initial discharge and the next bankruptcy.
There are no legal limits for filing bankruptcy, only time limitations that you should consider.
Is It Bad To File Bankruptcy a Second Time?
Generally speaking, it’s not the best to file multiple bankruptcies. If some file for bankruptcy more than once, then the person is probably making the same mistakes again.
But, that doesn’t mean filing for bankruptcy twice is bad. Sometimes a second filing is necessary and recommended. People who have worked out a proper plan with a bankruptcy lawyer in Mesa may find bankruptcy the best alternative for a bad financial circumstance.
If the plan is well-prepared, the second filing may be a good thing because it can give you a fresh start.
What To Consider When Filing Bankruptcy Again Without Discharge
You can file a second bankruptcy if the first one did not end with a discharge. It often means that your case was dissolved, so you are back in the same debt situation as you first started.
There are many reasons why your case was dismissed, including not showing up for a necessary meeting or not filing the required documents properly. These situations reflect the wrong strategy for a court process, and it usually angers it.
Failing to appear for a required meeting is not recommended. The court may order a 180-day delay in that case, but it is not the best strategy. The six-month stay can also be set with an automatic stay, which the court demands on filing and defends you from foreclosure.
If you dismiss the case when the creditor aspires to relief from stay, the court will see it as filing in bad faith and give you another six-month delay.
These situations are not the best to deal with. It often means you need a Glendale bankruptcy attorney. A skilled attorney will understand the court requirements and will make sure you meet the requirements. It may be pricey in the end, but it is better than dealing with the result of the dismissal.
What To Consider When Filing Bankruptcy Again With Discharge
The timing of your waiting period depends on the date you filed and not the date of discharge. You can follow these indications to have a better idea:
- Filing Chapter 7 After Another Chapter 7: After a successful first Chapter 7 discharge, you have to wait eight years to file another Chapter 7.
- Filing Chapter 7 After Filing Chapter 13: If you want to file for Chapter 7 after filing for Chapter 13, you will have to wait six years. You receive some benefits if you paid your unsecured creditors all the debts you owed in the first Chapter 13.
- Filing Chapter 13 After Filing Chapter 7: The waiting is four years. However, this period applies if you wish to achieve a second discharge. Some people call this strategy colloquially “Chapter 20”.
- Filing Chapter 13 After Filing Another Chapter 13: The waiting is two years. It allows you to obtain a dismissal in the second case.
Always contact a Chandler bankruptcy law office if you are not so sure about your bankruptcy situation. It can save you much time and hassle while preparing your court case.
Other Options To Filing Bankruptcy Twice
Filing for bankruptcy may be helpful to work your way out of debt, but it also often has negative consequences on your credit score. There are other options like debt consolidation or debt settlement, and you can consult them with your trusted lawyer.
- A debt settlement is an excellent approach for unsecured debts, including credit cards and medical debts. With this option, you and a lawyer can work out an amount you can pay the debtors to release the debt.
- Debt consolidation incorporates numerous unsecured debts into one that is paid off at a reduced interest rate. You will be able to pay once a month, and it will reduce the total interest paid.
Contact a Bankruptcy Lawyer In Mesa, Arizona
If you are having troubles with debt, and you are seeking the best advice before filing for bankruptcy, then contact Arizona Bankruptcy Law Attorneys today. Our affordable lawyers will help you get the fresh new start you deserve. Contact us today to set up a free consultation!