Can You File for Bankruptcy a Second Time?
Any debtor who files bankruptcy a first time is allowed to file again and receive a second discharge. However, debtors who decide to do so can only file a second time after a certain number of years have passed between the first and the second filing. The rules for the number of years vary accroding to the type of bankruptcy you filed first and the type you plan on filing the second time.
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Chapter 7
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One of the most common bankruptcy chapters for individuals is Chapter 7. However, not every person is eligible to file for Chapter 7. To be eligible, you must have income lower or equal to the average income on your state. If you have a higher income than the average, but your expenses are also very high, you may still qualify for filing if the court considers that due to your expenses you are incapable of paying your debts. If you qualify for filing, you must receive credit counseling with an approved agency within 180 days of filing your petition. If the court approves your case, the debts included in the discharge are erased and you are no longer responsible for payment.
Chapter 13
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The other most common bankruptcy chapter for individuals is Chapter 13. As of 2011, to file for Chapter 13 your secured debts must be equal to or lower than $1,081,400 and your unsecured debts must be equal to or lower than $360,475. As with Chapter 7, you must also receive credit counseling to be able to file for Chapter 13. However, unlike in Chapter 7, your debts are not erased. Instead, you create a repayment plan, that, if approved by the court, must be put into practice for three or five years. After you pay most of your debts during these years, your case is closed and the debts paid are discharged.
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Filing a Second Time
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The number of years between the first and the second filing is different from chapter to chapter due to the existent differences of each chapter´s outcome. You cannot receive a discharge for a Chapter 7 filing if you received a discharge from another Chapter 7 filing less than eight years before or if you received a discharge for a Chapter 13 filing less than six years before. You cannot receive a discharge for Chapter 13 if you received a discharge for another Chapter 13 filing less than two years before or if you received a discharge for a Chapter 7 filing less than four years before.
Exception
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You may be eligible to receive a discharge for a Chapter 7 filing if you received a discharge for a Chapter 13 filing less than six years before under some specific conditions. When you file for Chapter 13, you use your plan as a base to pay your creditors. If you were able to pay all unsecured debts or if you paid at least 70 percent of your unsecured debts with your repayment plan, you might be able to file for Chapter 7 before six years have passed, depending on the court's decision.
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