In the State of Ohio, If I Filed Bankruptcy Once, Can I File Again?
The act of filing bankruptcy, including both Chapter 7 and 11, is a lengthy process that impacts your financial health and future for a minimum of seven years. There are times, due to extreme financial hardship, that a second, subsequent bankruptcy is necessary. The bankruptcy laws for the state of Ohio follow the same rules and regulations as other states, as outlined by the federal government.
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Significance
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Bankruptcy is a legal protection from creditors for those unable to make agreed-upon payments on loans and debt. Bankruptcy does not remove debts such as back tax bills and student loans, which means that those payments continue. Your first bankruptcy filing removed the majority of your debt and allowed you to start obtaining new debt. It is not uncommon for people to file additional bankruptcies due to securing too much debt too quickly out of a first bankruptcy.
Considerations
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Bankruptcy in the state of Ohio is structured so that your credit report reflects the filing for a minimum of seven years. This makes securing new debt more difficult than prior to having the bankruptcy listed. However, new debt can be acquired as soon as your bankruptcy has been discharged. Subsequent bankruptcy filings will be reflected on your credit report, along with your initial filing. This should be taken into consideration, as two bankruptcies will damage your credit score and borrowing ability.
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Effects
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The effect of one bankruptcy is that you are not allowed to file another bankruptcy until seven years have passed since your last bankruptcy has been discharged. After the seven year date, you can file in the state of Ohio, as outlined by the federal government, although your filing will be more strictly scrutinized. Financial education classes will be required and you will need to explain to the judge the reasons why you could not maintain a stable financial lifestyle. The United States Bankruptcy Court, Southern District of Ohio, suggests using a free credit counseling service that is available prior to filing your second bankruptcy.
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References
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