In today's tumultuous economy, sometimes filing bankruptcy one time didn't do the trick and many wonder when are they able to file Chapter 7 bankruptcy again. Prior to 2008, just about every American got themselves into some sort of debt problem and some of them used a bankruptcy filing as a way to get rid of it. Now, as unemployment and the economy are wallowing in the mud, many honest hard-working folks are still unemployed and have used credit once again as a way to survive. For someone who is still unemployed, Chapter 7 bankruptcy is probably the best solution but might be a problem depending on the filing date from the previous one. There are no limits on how many times you file Chapter 7, but there are limits on how many times you can receive a bankruptcy discharge from the case.
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After the changes to the bankruptcy code back in 2005, a person filing Chapter 7 must wait eight years before they can get a bankruptcy discharge again.
What's interesting is, the date is from the last discharge from the date of filing the original bankruptcy petition. So if a person filed on September 1, 2006, they wouldn't be eligible for a bankruptcy discharge until after eight years from that date or September 1, 2014.
For people that that had to file Chapter 7 bankruptcy back in 2008 when the wheels were falling off the US economy, they are basically out of luck if they're planning to file for bankruptcy again. At least if they're planning on using Chapter 7.
One option for these folks is to file Chapter 13 bankruptcy to stop the creditors and as long as they can continue making the payments, they can wait until the eight-year timeframe has passed and convert the Chapter 13 into a Chapter 7 bankruptcy. I know this sounds complicated and even a little crazy, but when creditors are viciously chasing you, there has to be something to protect your family.
Filing Chapter 13 also shares the power of the automatic stay stopping any type of collection or legal activity against the debtor. The downside to a Chapter 13 is the repayment plan. If someone is unemployed or barely getting by, coming up with the monthly payments is next to impossible. The bankruptcy court wants people to succeed and will work with an individual to make it affordable. The individual filing and their bankruptcy attorney can submit a feasible repayment plan that will last 3 to 5 years to the court. If for some reason the payments become too burdensome, the individual can have their bankruptcy attorney modify the payment plan with the bankruptcy court. Hopefully, they will be able to hang on long enough to convert it to a Chapter 7 bankruptcy and wipe out all the debt.
When someone is down on their luck, sometimes any help is better than none. Sure this isn't an optimum solution but it might be a temporary fix to get someone by.
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