I, like many other Orlando bankruptcy attorneys, do not like repeat customers. Referrals are the backbone of my business, but a repeat customer is someone who, after receiving bankruptcy relief once, has met with financial troubles again. While I’m sorry to see them back in a difficult situation, I am happy to say, I can usually help my client get debt relief again.
Many people believe that bankruptcy is a “once-in-a-lifetime” deal. In other words, they think that once you have filed, you cannot file again. This is simply not the case. When a previous client calls me about possibly filing bankruptcy a second, or even a third time, I explain the following:
Since life can be “unfair” and it is impossible to predict a future financial disaster, bankruptcy laws do not prohibit you from receiving debt relief by filing bankruptcy again. In light of the recent economic downturns, people have lost their jobs, incurred medical bills or other unforeseen emergencies that put them in a position in which they again feel their best solution is to file bankruptcy.
So, let’s break it down. First, you may file a Chapter 7 bankruptcy once every 8 years. Section 727(a)(8) of the Code says as much.
If your last case was a Chapter 7, and you are within the 8 year window and cannot file another Chapter 7, then you may file a Chapter 13 bankruptcy if 4 years have passed from the time you filed the Chapter 7. See Section 1328(f)(1) for that one.
If your last case was a Chapter 13, then you must wait 6 years from the time you filed the Chapter 13 before you can file a Chapter 7. However, you can still get a Discharge from a Chapter 7 case filed within the 6 years from filing the previous case if the Chapter 13 payment plan paid either 100 percent of all allowed unsecured claims or paid 70 percent of such claims, was proposed in good faith, and represented your best efforts. Section 727(a)(9) is where to go for this.
If two years have passed since your last Chapter 13 case, you may file another Chapter 13 bankruptcy.
There are exceptions to the 2 year rule for Chapter 13 bankruptcies. In general, multiple filings occur in conjunction with avoiding home foreclosure. If you can show your circumstances have changed and that you could continue to make payments resulting in a successful outcome of your case and that the Judge rules in your favor, you may file a new Chapter 13 within the 2 years.
Navigating the timelines involved in these cases can be tricky and it is a good idea to talk to experienced Orlando bankruptcy attorneys about your specific situation before making a decision on whether you can file bankruptcy or not.
