Introduction
Filing for bankruptcy is a significant financial decision that individuals may need to consider when faced with overwhelming debt. However, it is essential to understand the rules and regulations surrounding bankruptcy, including how often one can file. In this article, we will explore the question, “How many years do you have to wait to file bankruptcy again?”
Bankruptcy Types
Before delving into the waiting period, it is crucial to understand the different types of bankruptcy. The most common types for individuals are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy: Also known as liquidation bankruptcy, Chapter 7 allows individuals to eliminate most of their unsecured debts. This process typically takes a few months to complete.
Chapter 13 Bankruptcy: Chapter 13 bankruptcy involves creating a repayment plan to repay a portion of the debt over a specified period, usually three to five years. This type of bankruptcy is suitable for individuals with a regular income who can afford to make monthly payments.
Waiting Period for Filing Bankruptcy Again
The waiting period to file bankruptcy again depends on the type of bankruptcy previously filed and the type of bankruptcy the individual intends to file next. Let’s explore the waiting periods for different scenarios:
Chapter 7 to Chapter 7: If an individual has previously filed for Chapter 7 bankruptcy and wants to file for Chapter 7 again, they must wait eight years from the date of the previous filing.
Chapter 7 to Chapter 13: If an individual has filed for Chapter 7 bankruptcy and now intends to file for Chapter 13, they must wait four years from the date of the previous Chapter 7 filing.
Chapter 13 to Chapter 13: If an individual has previously filed for Chapter 13 bankruptcy and wants to file for Chapter 13 again, they must wait two years from the date of the previous filing.
Chapter 13 to Chapter 7: If an individual has filed for Chapter 13 bankruptcy and now intends to file for Chapter 7, they must wait six years from the date of the previous Chapter 13 filing.
It is important to note that these waiting periods are applicable for receiving a discharge of debts. However, individuals can file bankruptcy before the waiting period expires, but they may not be eligible for a discharge.
Exceptions to the Waiting Period
While there are specific waiting periods for filing bankruptcy again, certain exceptions may allow individuals to file sooner. These exceptions include:
Change in Chapter: If an individual wants to switch from one chapter to another, such as from Chapter 7 to Chapter 13 or vice versa, they may be able to file sooner than the waiting period for the same chapter.
Previous Bankruptcy Dismissal: If a previous bankruptcy case was dismissed without a discharge, there may not be a waiting period to file bankruptcy again. However, it is crucial to consult with a bankruptcy attorney to understand the specific circumstances.
It is important to consult with a qualified bankruptcy attorney to determine the waiting period and any exceptions that may apply in individual cases. Bankruptcy laws can be complex, and professional guidance is essential to navigate the process correctly.
Conclusion
The waiting period to file bankruptcy again depends on the type of bankruptcy previously filed and the type of bankruptcy the individual intends to file next. For Chapter 7 to Chapter 7, the waiting period is eight years, while for Chapter 13 to Chapter 13, it is two years. Exceptions to the waiting period exist, including changing chapters or a previous bankruptcy dismissal without a discharge. Consulting with a bankruptcy attorney is crucial to understanding the specific waiting period and any exceptions that may apply.
References
– United States Courts: www.uscourts.gov
– Legal Information Institute: www.law.cornell.edu
– Internal Revenue Service: www.irs.gov
