I've Filed for Bankruptcy in the Past; Can I File
Again?
Yes. A person can file for bankruptcy more than
once, but you may have to wait a particular amount of time since the
last time you filed for bankruptcy in order to obtain a discharge of
your current or newly incurred debts. The policy underlying the United
States Bankruptcy Code is to permit any person to obtain a fresh start
from their debts. Unfortunately, unforeseen circumstances, such as
death, divorce, or unemployment can necessitate filing a new
bankruptcy. The amount of time you have to wait between filings depends
on what type of bankruptcy you previously obtained, and what type of
bankruptcy you want to file for now.
If you previously filed a Chapter 7 bankruptcy
(also known as a "liquidation" or "total discharge"), you must wait
eight years before filing again for a new Chapter 7 discharge. Note
that the eight years begins with the date of the initial filing, not
the date of the initial discharge. Most consumers file for Chapter 7
bankruptcy. In Chapter 7 liquidation, the bankruptcy court judge enters
an order discharging most debts, including credit cards, loans, and
other types of debt, but not child support, spousal support, and some
taxes.
If you previously filed a Chapter 13 bankruptcy
(also known as a "wage earner repayment plan"), you may file a new
Chapter 13 bankruptcy after as little as two years after the original
petition was filed. In Chapter 13 bankruptcy, the bankruptcy court
judge creates a repayment plan on behalf of the debtor for a period,
usually three to five years.
If you previously filed a Chapter 7 bankruptcy,
you are eligible to file for a new Chapter 13 bankruptcy after four
years from the previous filing.
If you previously filed a Chapter 13 bankruptcy,
you must wait six years before filing a Chapter 7 bankruptcy. This
generally applies only where more than seventy percent of the plan is
completed. If less than seventy percent is completed, it may be better
to consider a petition converting the existing Chapter 13 repayment
plan into a Chapter 7 discharge.
In order to convert a Chapter 13 repayment plan
into a Chapter 7 liquidation, you must meet the qualifications for a
liquidation, prepare the proper forms, and file them with the
bankruptcy court. In a limited number of cases, a Chapter 7 can be
"reconverted" back into a Chapter 13 bankruptcy. Some courts do not
permit debtors to convert or reconvert their bankruptcies. A bankruptcy
attorney can advise you on if a conversion or reconversion is permitted
in your particular bankruptcy court.
It is significant to recognize, as well, that
under the Fair Credit Reporting Act, both bankruptcies may appear on a
consumer's credit report after bankruptcy, if the cases are filed
within ten years of one another. Also, new accounts and affirmed
accounts may be reported with a more recent delinquency date.
In summary, there is not a fixed limit on the
number of times a consumer can file for bankruptcy. It may be necessary
to wait a particular amount of time between filings. That time may
vary, based upon the type of bankruptcy you previously filed, and the
type of bankruptcy you wish to file now. Filing a new bankruptcy can
have consequences, such as the ability to convert, or negative
information appearing on your credit report.
Article Source: http://www.articlesbase.com/bankruptcy-articles/
i039ve-filed-for-bankruptcy-in-the-past-can-i-file-again-
2140651.html About the Author
Justin M. Baxter
Baxter & Baxter, LLP
8835 SW Canyon Lane, Suite 130
Portland, Oregon USA
Bankruptcy
Attorney | 