I’m the same as many other Orlando bankruptcy attorneys in that I do not like to see repeat customers. If a client comes back to me it means they have had financial problems again even after filing bankruptcy at least one time before. I love referrals, but don’t like repeat customers because the idea is, if you have to file bankruptcy, only do it once. The good news is that I can almost always help them get out of debt again.
One of the common misconceptions people have, in fact, is that a person can only file bankruptcy once in a lifetime. This is not true. When I do have a former client come in to see me again about filing bankruptcy a second, or third time, I explain to them what I will explain here today.
Because it is difficult to predict when a catastrophic financial disaster may hit, the bankruptcy laws allow you to file bankruptcy more than once in your lifetime and get the debt relief you need. After all, it only takes an extended time out of work, a car accident resulting in enormous hospital bills, or any other unexpected curve ball that life sometimes throws us to find that you need to file bankruptcy again.
Section 727(a)(8) of the Bankruptcy Code states that every 8 years you may file under Chapter 7.
If less than 8 years have passed since you filed a Chapter 7 bankruptcy, you cannot file again under Chapter 7. If it’s been at least 4 years since you filed your Chapter 7, you may file a Chapter 13 instead. This is covered in Section 1328(f)(1).
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 you would like to file another Chapter 13 bankruptcy, you only have to wait 2 years before you can file again.
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.