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The unimaginable has happened; you find yourself needing to file for bankruptcy. The only catch is that it’s not your first time having to file. What do you do? Where do you start? In this blog, we will look over the things someone has to consider when they find themselves filing for bankruptcy again.

Bankruptcy Classifications

When discussing the amount of time one can file for bankruptcy, it’s important to discuss the different types of classifications.

  • Chapter 7 - This type of bankruptcy is also known as “liquidation bankruptcy.” With this, the person (or business) filing has to sell their personal property and assets to lower the debt owed. To quality for Chapter 7, you also must pass the means test, which proves you do not have a high level of disposable income. The debtor’s debt is relieved with the sale of their property.
  • Chapter 13 - This type of bankruptcy is also known as “reorganization bankruptcy.” The person (or business) filing bankruptcy is not required to sell their personal property and assets but instead must follow a court-mandated repayment plan. The debtor is still responsible for paying their debt back but is able to do so in a more manageable way.

How Many Times?

The truth is, there is no limit on how many times you can file for bankruptcy. That does not change even if you have received a discharge before. In order to file multiple times, you must wait out the first time limit. If you file again before your time limit is reached, it could affect the discharged amount of money.

Bankruptcy Time Limits.

The time limit for filing for bankruptcy again depends on the chapter you file for and when you last filed.

  • Filing for Chapter 7 again - 8 years from the date you originally filed the first time.
  • Filing for Chapter 13 again - 2 years from the date you originally filed the first time.
  • Previously filed Chapter 7, Now Filing Chapter 13 - If you are now filing for Chapter 13, you must wait 4 years since you originally filed for Chapter 7. This form of filing is also known as Chapter 20.
  • Previously filed Chapter 13, Now Filing Chapter 7 - If you are now filing Chapter 7, you must wait 6 years since you originally filed Chapter 13. There are some exceptions with this time limit if you have paid off your previous debt or paid 70% of your payment plan in good faith.

How Can We Help You?

We offer free consultations to help walk you through and understand the filing process. It can be confusing and scary, but we here at RHM LAW LLP are here to help ensure you are taken care of and not alone. Contact us at (213) 344-0043 to get started on your bankruptcy claim today.