Part 1 - Bankruptcy Filing Time Limits - "The 2-4-6-8 Rule"
Posted on Nov 20, 2014 10:06am PST
In light of today's economic struggles, it is not unusual for a Debtor
who has previously filed for
bankruptcy to need to file a second time for relief from payments to creditors. As
such, the question that arises is "How long do I have to wait before
I can file for bankruptcy a second time and still get a discharge of allowable
debts?"
In order to answer this question, you just apply the simple rule of 2-4-6-8.
Here is how it works.
2 years - If you previously filed a Chapter 13 case where you completed the plan
and received a discharge, then you can file a second Chapter 13 case after
2 years and receive a discharge.
4 years - If you previously filed a Chapter 7 case and received a discharge, then
after 4 years you can file a Chapter 13 case.
6 years - If you previously filed a Chapter 13 case and received a discharge,
then after 6 years you can file a Chapter 7 case. There is an exception
to this rule. If you paid 100% to all creditors in the first Chapter 13
case or the court finds that you made your best efforts to pay creditors
at least 70% of your debts in the prior case, then the rule does not apply.
8 years - If you previously filed a Chapter 7 case, then after 8 years you can
file another Chapter 7 case.
Of course, a key factor in these situations is whether the prior case
was completed where a discharge order was entered. If the prior case was
dismissed before discharge was granted, then a Debtor can refile a case.
Therefore, there are no limitations with the time period to file, except
where the case was voluntarily dismissed by the Debtor. In that situation
,
there is a 180 day time limit before a Debtor can file a second case.
There are also issues with the length and effect of the automatic stay
which apply, but that is a different topic… If you are interested
in talking to a bankruptcy attorney about your situation, please call
us at (847) 426-7179 for a
free consultation
.
NEXT TOPIC:
Part 2 – Bankruptcy Income Limits