If you’ve filed bankruptcy in the past, can you file again? How often can you file bankruptcy? The answer depends on a variety of factors. A Paducah KY bankruptcy attorney can help you examine your circumstances and explore your options. Contact Farmer & Wright, PLLC today to learn more.
Limitations on Filing for Bankruptcy
There is no limit on the number of times you can file for bankruptcy within your lifetime. However, there is a limit on how often you can get a discharge. That limitation is based on the type of bankruptcy you are filing, as well as what type you filed in the past (and when).
Additionally, if you file bankruptcy more than once in a year and dismiss it, the benefits of filing may be limited. The automatic stay, which stops legal actions against you, may be reduced in length or completely eliminated. Creditors may also be less likely to negotiate a payment plan with you if you file bankruptcy and dismiss it frequently.
What Is a Bankruptcy Discharge?
When a bankruptcy ends and all debts are eliminated, this is called a discharge. Discharge often occurs after some amount of money is paid to the creditors. However, in some situations, especially that of Chapter 7 bankruptcy, the creditors do not receive payment during a discharge. Instead, those debts are wiped clean from your slate and you can start fresh.
A bankruptcy discharge will appear on your credit report; however, it will not appear as if you still owe the creditor. Instead, the bankruptcy will be indicated. A Chapter 7 will remain on your report for 10 years and a Chapter 13 will remain on your report for seven years. After that, you will owe nothing and the discharge will be hidden from your report.
How Often Can You Get a Bankruptcy Discharge?
Since bankruptcy discharge is the only thing that is legally limited, how often you can file bankruptcy and get a discharge? That depends on the type of bankruptcy you are seeking and what type you filed in the past.
If you filed a Chapter 7 bankruptcy and are seeking a:
- Chapter 7, you must wait at least eight years.
- Chapter 13, you must wait four years.
If you filed a Chapter 13 bankruptcy and are seeking a:
- Chapter 7, you must wait six years. There are exceptions if you paid all of your unsecured debts or have paid at least 70% and did your best to stick with your payment plan.
- Chapter 13, you must only wait two years.
The length of time is measured between the date you originally filed and the new date on which you are filing the new bankruptcy case.
Contact a Paducah KY Bankruptcy Lawyer to Learn More
If you are considering filing bankruptcy again, it’s important to consult with an attorney who can ensure that you qualify for a discharge. Contact a Paducah KY bankruptcy attorney at Farmer & Wright, PLLC today.