Introduction
Filing for bankruptcy can be a difficult decision, but for individuals facing overwhelming debt, it can provide a fresh start. Chapter 7 bankruptcy is a common option for those seeking relief, but how often can you file for it? In this article, we will explore the frequency at which individuals can file for Chapter 7 bankruptcy and the factors that may affect eligibility.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is designed to help individuals eliminate most of their unsecured debts, such as credit card debt and medical bills. It involves the liquidation of non-exempt assets to repay creditors, and any remaining eligible debts are discharged, providing a clean slate for the filer.
Frequency of Filing
The frequency at which you can file for Chapter 7 bankruptcy depends on previous bankruptcy filings and the time elapsed between them. The specific rules are outlined in the United States Bankruptcy Code.
Previous Chapter 7 Bankruptcy: If you have previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from the date of your previous filing before filing for Chapter 7 again. This waiting period is in place to prevent individuals from abusing the bankruptcy system.
Previous Chapter 13 Bankruptcy: If you have previously filed for Chapter 13 bankruptcy and received a discharge, you must wait six years from the date of your previous filing before filing for Chapter 7. However, there are exceptions to this rule. If you have paid back at least 70% of your unsecured debts in your Chapter 13 plan, you may be eligible to file for Chapter 7 earlier.
Exceptions to the Waiting Period
While the waiting periods mentioned above are standard, there are certain circumstances where you may be eligible to file for Chapter 7 bankruptcy before the specified time has elapsed. These exceptions include:
Change in Circumstances: If you can demonstrate a significant change in circumstances that affects your ability to repay your debts, you may be able to file for Chapter 7 bankruptcy earlier. Examples of such changes include job loss, reduction in income, or unexpected medical expenses.
Dismissed Bankruptcy Case: If a previous bankruptcy case was dismissed without a discharge, you may be able to file for Chapter 7 bankruptcy again immediately. However, it is essential to address the issues that led to the dismissal to increase the chances of a successful filing.
Consulting with an Attorney
Navigating the bankruptcy process can be complex, and it is always advisable to consult with an experienced bankruptcy attorney. They can assess your specific situation, guide you through the process, and help determine your eligibility for Chapter 7 bankruptcy based on the applicable rules and exceptions.
Conclusion
In conclusion, the frequency at which you can file for Chapter 7 bankruptcy depends on various factors, including previous bankruptcy filings and the time elapsed between them. Generally, a waiting period of eight years is required after a previous Chapter 7 bankruptcy discharge, while a waiting period of six years is required after a Chapter 13 discharge. However, exceptions exist for significant changes in circumstances or dismissed bankruptcy cases. Consulting with a bankruptcy attorney is crucial to understanding your eligibility and navigating the bankruptcy process.
References
– United States Courts: Bankruptcy Basics – www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
– Cornell Law School Legal Information Institute: 11 U.S. Code ยง 727 – Discharge – www.law.cornell.edu/uscode/text/11/727
