Instead of a repayment plan, the Chapter 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 bankruptcy allows you to keep all of your property as long as the monthly repayment plan pays for the value of your assets. The discharge of your debts gives you the fresh start you need. The Chapter 11 bankruptcy process provides similar relief to that provided in Chapter 7 and Chapter 13, but is generally reserved for filers with businesses or significant assets and is a lot more expensive than even a Chapter 13 bankruptcy.
This article will focus specifically on Chapter 7 and Chapter 13 bankruptcy. There is no limit to how many times someone can seek bankruptcy protection. To prevent an abuse of the bankruptcy process, the Bankruptcy Code requires a certain amount of time to pass between cases that result in a discharge. This prevents people from running up high credit card balances and other types of debt and filing bankruptcy every few years.
The type of bankruptcy filed in the previous case determines the time limit between cases. The time starts to run on the date the prior case is filed with the bankruptcy court. This is the longest amount of time between cases required by the Bankruptcy Code.
So, someone who successfully discharges their unsecured debts through Chapter 7 can file a Chapter 13 bankruptcy to pay off tax debts or other types of debt that survived the prior case. If you previously filed a Chapter 13 case and received a discharge and are looking to file a Chapter 13 case again, you have to wait at least two years from the filing date of the first case before filing the second case.
This is pretty rare. The minimum length of a Chapter 13 repayment plan is 3 years. Receiving a discharge before completing a 3 year plan is possible only if an unexpected hardship makes completing the plan impossible. Upsolve Community Member If the time of service was after your case was filed, it's considered Grow Your Legal Practice.
Meet the Editors. If you file bankruptcy too soon after you have received a previous bankruptcy discharge, you cannot receive another discharge. Time Limits Apply to Discharges, Not Bankruptcy Filings Bankruptcy law doesn't set a minimum period that you must wait before filing for bankruptcy a second time. Filing Under the Same Bankruptcy Chapter: Chapter 7 and Chapter 13 Here are the timeframes if you plan to file the same bankruptcy chapter that you filed the first time: Successive Chapter 7 cases You'll have to wait eight years after the first Chapter 7 case filing date before filing the second case.
Successive Chapter 13 cases Two years must elapse between filing dates before you'll be entitled to receive a second Chapter 13 discharge. Filing Under Different Chapters: The Order Matters Here are the waiting periods when a second bankruptcy case is a different chapter than the one you received your first discharge in. Chapter 13 before Chapter 7 If the court granted your first discharge under Chapter 13 bankruptcy, you'd need to wait six years from the Chapter 13 bankruptcy filing date before filing for a Chapter 7 discharge.
Chapter 7 before Chapter 13 If the court granted your first discharge under Chapter 7, you'd have to wait four years from the Chapter 7 filing date before filing a Chapter 13 case.
The court dismissed the first case Unless the court orders otherwise, you can file again. A day waiting period may apply if you failed to obey a court order or appear in the case, or you voluntarily dismissed the case after a creditor filed a motion for relief from the bankruptcy stay. The court denied your discharge You might be able to file again, but you probably won't be entitled to a discharge of the debts listed in your first case. This is another unusual circumstance wherein you would be wise to seek the advice of an experienced bankruptcy lawyer.
Talk to a Bankruptcy Lawyer Need professional help? S Code requires. As long as you stick to the time limits between bankruptcies, feel free to apply again to save yourself from the current financial challenges.
Do you need help filing for bankruptcy in Stroudsburg? November 25, In Original Content. What are the Time Limits? The novel coronavirus is impacting all aspects of our daily lives, from social distancing to unemployment, as people around the world try to figure out their new normal and their finances along with it. From June 30, to June 30, , there were nearly , Chapter 7 bankruptcy filings in America, which was significantly less following the Great Recession.
From , there were over 1 million Chapter 7 filings. Rohan Pavuluri, CEO and co-founder of Upsolve , said filings have declined extensively since the market crash of , but he expects them to increase due to pandemic-driven unemployment. And he would know Upsolve is an online platform that helps people navigate the intricacies of bankruptcy paperwork for free, similar to TurboTax but for bankruptcy filings. Yes, when a debtor files bankruptcy, they will be required to attend a meeting of the creditors.
The meeting of creditors is commonly referred to as the meeting because the meeting is required under section of the bankruptcy code. Failure to attend the meeting can result in your case being dismissed. Debtors are allowed to have their bankruptcy lawyer present with them at the meeting.
If you filed for bankruptcy, it is strongly recommended to have your bankruptcy attorney present with you. The Northern District of Florida provides detailed instructions on how to prepare the creditor matrix that has to be submitted along with the other bankruptcy forms.
You can file your case in the Northern District at the bankruptcy courts in Tallahassee and Pensacola, depending on the county you live in. If you are struggling to keep up with your debt, bankruptcy may be the solution. Bankruptcy allows borrowers to stop all collection efforts and get a fresh start immediately. Phone calls, wage garnishments , foreclosure sales, and collections notices all must stop immediately after a bankruptcy is filed.
Bankruptcy also provides for a discharge of debt to give people the fresh start they need to rebuild. Bankruptcy has a lot of benefits, but it is not right for every situation. If you are considering bankruptcy, contact a bankruptcy lawyer in Tampa to schedule a consultation. Before we jump into state-specific information, I would like to provide a little information about Chapter 13 bankruptcy and a few of the key differences to Chapter 7 Bankruptcy Florida.
Chapter 13 Bankruptcy : Chapter 13 bankruptcy is also known as the wage earners bankruptcy. It is a voluntary reorganization of debts by the individuals according to the IRS. In this chapter, debtors propose an installment repayment plan over three to five years.
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