AFTER A CHAPTER 7 BANKRUPTCY DISCHARGE

You have to wait a total of 8 years from a prior Chapter 7 filing if you received a discharge of your debts. If circumstances prevent waiting the entire time then you will be liable for all debts this time around. There is the option of filing Chapter 13 after a total of 4 years have passed if you’re relying on a discharge to erase your debts. As with the other bankruptcy declaration, if you try to file before the time limit has passed then you’ll find yourself liable for any valid debts.

AFTER A CHAPTER 13 BANKRUPTCY DISCHARGE

The rules are a little different in this scenario because the amount you paid in the last filing will influence your ability to obtain a full discharge if you file Chapter 7 bankruptcy earlier than the time limit of 6 years. If you paid at least 70% of the amount owed the last time you declared, you can file early and still get the debts dismissed. Otherwise, the exception does not apply and you’ll have to take responsibility. Only 2 years must pass if you’re going to file Chapter 13 again with the intention of dismissing liability for debts.

Keep in mind that even though you could potentially file multiple times, bankruptcy should be used as a last resort rather than a method of excusing debt every few years. If you’ve been faced with declaring more than once, it is advisable to seek debt counseling to prevent putting yourself in such a dire financial situation again. For more information please fill out our contact form or call 812-777-5566.

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