How Often Can You File For Bankruptcy In arizona?
Filing for bankruptcy is not a one-time thing. You can do this process more than once in a lifetime because there’s no limit to how many times you can file. However, there are period limits between filing dates.
Depending on your situation, you could file for bankruptcy but not receive a debt discharge, so you have to be very cautious. Besides, you have to consider that the time limits depend on what Chapter you file under, and the U.S. Bankruptcy Laws always determine these time limits.
Our professional Gilbert bankruptcy attorneys have summarized some points to know how often you can file up for bankruptcy.
What Are the Wait Times Between Bankruptcy Filings?
These depend on the Chapter to Chapter Options, which are:
- Chapter 7 to another Chapter 7 bankruptcy: 8 years
- Chapter 7 filing for Chapter 13 bankruptcy: 4 years
- Chapter 13 filing for Chapter 7 bankruptcy: 6 years (you can also pay in full on Chapter 13 repayment plan)
- Chapter 13 to another Chapter 13 bankruptcy: 2 years
These wait times prevent overuse of the system and high credit card debts that cannot be paid.
Why You Should Switch Your Bankruptcy Filing From The Last Chapter
Your repayment plan will change depending on the type of bankruptcy you file. It will also change the number of unsafe debts you owe as well as the amount of time the bankruptcy remains on your record. That’s why it’s always better to file for a different bankruptcy than the one you used in a previous case.
A Gilbert bankruptcy lawyer can help you understand the best options to pay for your debt comfortably. A lawyer may not change the time limits between filing dates, but it’s the best choice to decide if changing your Chapter is wise. Besides, a professional attorney can also help you file as soon as the date is available.
These are some of the strategies to complete your second bankruptcy filing:
- Changing from Chapter 7 to Chapter 13: If you pay your debts during Chapter 7, you can file a Chapter 13 to create a repayment plan to pay off the tax debts that were not released during Chapter 7.
- Changing from Chapter 13 to Chapter 7: The six-year waiting lapse can be removed if you pay back the entire unsecured debt to creditors. You may even have to pay back only 70% of unsecured debt.
- Repeating Chapter 13: This strategy is common to handle student loans or tax debts repayment because these debts cannot be discharged.
What do with Numerous Bankruptcies on Your Credit Report
You may need help with a Gilbert bankruptcy lawyer to get the best help in filing for multiple bankruptcies. You may also need to consider a court date in between filings.
An automated stay can expire before your next bankruptcy discharge is registered. You have to make sure that the discharge is ready before the automatic stay ceases.
Also, be aware of your credit report language, it will always let you know about your filing and status date.
Having numerous bankruptcies on your credit history normally indicates you have a hard time finding low-interest rates, so you will have a poor credit score for over a year.
Chapter 20 Bankruptcy: Filing bankruptcy before the time limit is up
The time limits indicate how long a debtor must wait to release debt through another bankruptcy. If you don’t want another debt discharge, but you want a plan to organize your remaining debts, filing a Chapter 13 after a Chapter 7 discharge may be an excellent option.
The “Chapter 20 bankruptcy” is the informal name for filing Chapter 7 and Chapter 13 in succession. This process tends to be complex, and many courts don’t allow a double filling before the time limit is up. Hiring a Gilbert bankruptcy attorney is very helpful in this case.
Consider the pros & cons of Double Filing
- Getting a Chapter 7 discharge and filing for Chapter 13 right away can give you more time to pay back debts that you cannot discharge.
- If you need more time to pay off your debt, you can file for a second Chapter 13 to get more time instead of having automatic wage garnishment.
- If you did not get a discharge during the first filing, you could get one in the second filing.
- If you file too early, you cannot have another debt discharge until the time limits have finished, and that could make you waste much money and time.
- If the judge notices that you have filed again “in bad faith”, they will stop the automatic stay, unless you prove you filed in good faith.
Contact a Gilbert Bankruptcy Lawyer Today!
Filing for bankruptcy can be difficult, especially if you do the process by yourself. Contact Gilbert Bankruptcy Lawyers to get the most effective path to get debt relief. Whether you need help with a Chapter 20 Bankruptcy, or you want to know the best way to pay off your debts, we are always ready to help you! Contact our Gilbert Bankruptcy attorneys today to get your consultation as soon as possible!