If you’ve filed for bankruptcy in the past, you know the powerful financial relief it can provide. When you find that your bills are once more too much to keep up with, you might be wondering if filing a second time is an option and how soon you can file. However, bankruptcy refiling rules depend on bankruptcy discharges and prior filing dates. This means that when you’re eligible to file again depends largely on how long ago your previous bankruptcy was filed, whether there was a discharge, and what type of bankruptcy you filed.
The Benefits of Filing Bankruptcy
The thought of filing for bankruptcy can be an intimidating one. However, it’s often the best way to get ahead when your financial situation becomes more than you can handle. If you’ve already filed for bankruptcy in the past, you’re probably aware that it’s a practical way to get ahead of your debt and regain control of your finances.
Individuals can file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy focuses on discharging unsecured debt like credit card debt or medical debt. Chapter 13 similarly aims to discharge unsecured debt, but it also helps you regain control of secured debt like a home mortgage or auto loan by setting up a payment plan. Most people can file for Chapter 13 bankruptcy. You can only file Chapter 7 if you pass a means test and show that your income won’t allow you to make payments on your debt.
Understanding Bankruptcy Discharges
Filing bankruptcy allows for debt discharge, meaning the cancellation of your debt. When you file for bankruptcy, you have your debts formally discharged. For those who file Chapter 7, this is a shorter process that typically takes around three months. At the end of the bankruptcy process, you receive your debt discharge.
Your past bankruptcy discharge and percentage of paid claims are important. These factors have the primary bearing on how soon you’re able to file for bankruptcy again.
With Chapter 13, the process takes much longer. Chapter 13 typically is either three or five years. Payments under the chapter 13 plan start 30 days after filing. At the end of the applicable repayment period, if you’ve met your payment obligations, you’ll receive your discharge. From the time you file for bankruptcy, it can take either a few months or a few years to receive your discharge.
Are you considering re-filing for bankruptcy in Florida? I’m Lewis Roberts, PA, an experienced Florida bankruptcy attorney. Call (407) 749-0080 to discuss your options during a free consultation.
Bankruptcy Refiling Rules Depend on Bankruptcy Discharges
If you’ve been researching whether you can file bankruptcy for a second time, you may have read about Chapter 7 and 13 bankruptcy having different wait times. This is true, and it’s important to understand how it impacts your current goals and timeframes. Depending on which type of bankruptcy you filed in the past, you face different wait times for filing again.
Chapter 7 Wait Times
Chapter 7 bankruptcy requires that you wait eight years from your last filing before filing for Chapter 7 again. If it’s been less than eight years since you last filed Chapter 7, this might feel like an unfairly long wait time. However, Chapter 7 allows for significant amounts of debt to be wiped clean in a fairly short period. This can be a relief when you’re initially filing. The long wait time ensures people don’t take advantage of the benefits offered by Chapter 7. The eight-year wait period helps discourage abuse of the debt-relief system.
Chapter 13 Wait Times
You face a much shorter wait time if you’ve filed for Chapter 13 bankruptcy in the past and are hoping to do the same now. In this case, you only have a two-year wait period. The shorter wait period here takes into account the nature of your Chapter 13 discharge. Since it’s assumed that you enrolled in a payment plan and made a good-faith effort to pay off your debt, you’re not required to wait as long as you are in cases involving a Chapter 7 discharge.
Do the Time Limits Apply if I File a Different Chapter of Bankruptcy?
It’s important to know that the eight- and two-year time limits that accompany refiling for Chapter 7 and Chapter 13 apply only in cases where you are filing the same type of bankruptcy that you did in the past. Depending on your current financial circumstances, you might be interested in filing a different type of bankruptcy than you filed the first time around. You’re allowed to do this if you meet the criteria, but you face different time limits for filing.
Filing Chapter 13 After Chapter 7
If you filed Chapter 7 in the past and are now considering Chapter 13, you only have to wait four years. If it has been less than eight years since you filed Chapter 7 — or you now have secured debt like a home mortgage you don’t want to liquidate — Chapter 13 might be your best option. However, it’s important to recognize that this will be a different experience than your Chapter 7 bankruptcy, and you’ll have to make regular payments on your debt for the next three to five years.
Filing Chapter 7 After Chapter 13
Time limits for filing a Chapter 7 after a Chapter 13 vary. If 70% to 100% of your claims were paid in the prior bankruptcy, there may be no required wait period. There’s typically a six-year wait period if less than 70% of your claims were paid. You’ll also need to pass the means test before you qualify for Chapter 7.
Consult a Florida Bankruptcy Attorney Today
It’s important to consider how filing for bankruptcy again can impact factors like your credit score and your long-term financial goals. However, in some cases, filing for bankruptcy more than once is the right choice. The best way to know which path forward is best for you is to consult an experienced bankruptcy attorney. A lawyer can help you assess alternative options like debt settlement or debt consolidation and, if bankruptcy is your best option, assist you with the process of filing.
Do you need the help of an experienced Florida bankruptcy attorney? Give me a call today at (407) 749-0080 to schedule a free consultation to learn how I can help with refiling bankruptcy in Florida.
Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]
