Overwhelming or unmanageable debt can arise for a variety of reasons, and unfortunately, it can often arise due to a circumstance that can be difficult to predict or anticipate such as the loss of a job, the ending of a relationship or the occurrence of an unanticipated expense. Bankruptcy can be an excellent resource to address such a situation, and is often one of the first solutions explored by anyone who finds themselves in such a circumstance. However, for those who have already availed themselves of the bankruptcy process to deal with a similar situation previously, it is common to wonder whether bankruptcy can be pursued for a second time to deal with their current circumstances.
The first thing to consider when analyzing this issue is whether or not the prior bankruptcy filing ended with a discharge. In limited circumstances, a bankruptcy can end without a discharge if, for example, a Ch. 13 bankruptcy was filed but the scheduled plan payments were not completed. A bankruptcy might also close without a discharge if the person who has field it requests that it be voluntarily dismissed. In either circumstance, a new bankruptcy can typically be filed right away, assuming that the prior filing was dismissed without prejudice.
For most people who have previously filed bankruptcy however, the case ended with a discharge and closed after the estate was settled. Here, the question of when another bankruptcy can be filed depends on what chapter of bankruptcy was filed previously. If a Ch. 7 bankruptcy was filed, the wait time until the next filing will usually be a little bit longer than it would be if the last case what was filed were a Ch. 13 instead.
The other factor to consider is the chapter of bankruptcy that you wish to file at present. If you have previously filed a Ch. 7 and wish to file another, you must wait until eight years has passed since the last Ch. 7 was filed. Conversely, if you have previously filed a Ch. 7 and now wish to file a Ch. 13, you only need to wait until four years have passed. For Ch. 13 filings, the mandatory waiting periods are slightly different than they are for Ch. 7’s. If you have previously filed a Ch. 13 and wish to now file a Ch.7, you only need to wait until six years have passed since the last bankruptcy was filed. If you have previously filed a Ch. 13 and now wish to file another, you must only wait for two years.
Bankruptcy can serve as an effective and wide sweeping solution to many of the financial obstacles that we might encounter in life. Despite this, there are sometimes circumstances in which we might encounter a different financial obstacles at some point in the future that causes us to consider revisiting the bankruptcy process once again.
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If you find yourself in such a circumstance, please consider reaching out to our firm to speak with an attorney and decide whether bankruptcy might be the best path forward for you. So, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
