Can I File Another Chapter 7 After 6 Years?
Bankruptcy is a legal proceeding that allows honest yet unfortunate debtors a means of obtaining a fresh financial start. The U.S. Constitution granted the right and responsibility for creating bankruptcy laws to the Congress, so all bankruptcy cases are heard in federal court. Federal bankruptcy laws permit debtors to file bankruptcy more than once, but stipulate specific time frames between filings.
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Types
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The most common types of bankruptcy filed by individuals include Chapter 7 bankruptcy, which is sometimes referred to as total bankruptcy or liquidation bankruptcy, and Chapter 13 bankruptcy, which is sometimes referred to as the Wage Earners Plan.
Chapter 7
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Chapter 7 is the most frequently filed type of individual bankruptcy. Approximately 99 percent of debtors who file Chapter 7 bankruptcy receive a discharge of their debts, unless their case is dismissed or converted to a different type of bankruptcy, according to the U.S. Courts. Most discharge orders are issued within three months of the creditors meeting. The court trustee assigned to the case is responsible for liquidating the debtors non-exempt assets and distributing the proceeds to the creditors in a manner prescribed by law. Once a debt has been discharged by the court the creditor may not continue or begin any collection or legal action against the debtor.
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Time Frame Between Filings
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Some individuals may become hopelessly indebted again after having their debts discharged through Chapter 7 bankruptcy. Federal bankruptcy law permits debtors to file another Chapter 7 bankruptcy petition eight years after the previous Chapter 7 was discharged. The federal bankruptcy court will deny a petition for discharge under Chapter 7 if the debtor had his debts discharged through either a Chapter 7 or Chapter 11 bankruptcy within the previous eight years.
Other Considerations
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Debtors who received a discharge of their debt through a Chapter 12 or Chapter 13 bankruptcy may receive a discharge through Chapter 7 bankruptcy after six years. A debtor who previously had his debts discharged through Chapter 7, Chapter 11 or Chapter 12 may file for discharge under Chapter 13 after four years. Bankruptcy cases filed sooner than these time frames will be dismissed and no discharge of debts granted, according to the U.S. Courts.
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