When Can I File Bankruptcy Again?
Filling for a bankruptcy can be a very distressful moment for a business or an individual. One must be very cautious while budgeting. But unfortunately some people do not learn from their mistakes and get in the vicious circle of debt trauma and are forced to file bankruptcy again and again. Filling a bankruptcy can have very unfavorable effect on your credit rating which may lead to difficulty in getting loans and other kind of credit in future.
However a person or a business cans file bankruptcy for n number of times and filling a bankruptcy does not have any limit provided sufficient time gap is maintained in between two occasions. If sufficient time gap is not maintained then it may lead to not getting a discharge. Following are few of the reasons for something like this to happen
If in case there has not been sufficient time gap between the initial filling and the one which is being planned and the debtor has enough assets then filling a bankruptcy can be beneficial.
If in case the debtor has assets in the form of insurance claims or lawsuits then these can be used to pay of the debts. However the value would not be at its best as this amount will be used to pay of the creditors.
Another instance can be, that the debtor is due to pay off loans such as the student loan or indirect taxes then he can file I subsequent bankruptcy and he still will get a discharge.
To sum up the time difference between two subsequent bankruptcy cases should be as follows
8 years between 7s. -727(a) (8)
2 years between 13s. -1328(f) (2)
4 years between a 7 and 13 -1328(f) (1)
6 years between a 13 and 7(if fewer than 70% plan). -727(a) (9)
Remember that the time frame is counted from filling of one bankruptcy to the filling of another bankruptcy.
Although bankruptcy should be taken as a last resort but if nothing strikes then one must resort to bankruptcy but it’s advisable to take proper consolation from your attorney so that he can guide you as to what should be the requisite time frame. By following certain rules and taking proper advise can help you get full benefits of the bankruptcy weather it is for the subsequent time as well.
Author Bio:
Sacramento, California based bankruptcy attorney Kristy Hernandez received her B.A. in Political Science from University of California at Davis She received her Bankruptcy Attorney Sacramento for handling legal services of bankruptcy, Home loan modification, Foreclosure Defense, Law firm Fresno ca and also in Sacramento, Citrus Heights Bankruptcy Lawyer, and the surrounding cities.
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