Starting a Chapter 13 case is very much like starting a Chapter 7 case. You need to gather all the information about your assets and debts, complete the bankruptcy schedules, and file them in the Bankruptcy Court. File a Chapter 13 plan. The distinguishing factor of a Chapter 13 case is your ability to create a plan to pay at least some of your debt to your creditors. You must then propose to pay unsecured debts whatever you can pay from your monthly disposable income.
Your plan must last 60 months 5 years , although under some circumstances you may get permission for a month 3 year plan. This means that you need to make the calculations for your monthly payments when you prepare the rest of your paperwork.
If necessary, you may file the petition without the bankruptcy plan, and then file the plan within two weeks. Make note of the filing date. As with a Chapter 7 case, you need to record and keep note of the date that you filed your Chapter 13 bankruptcy petition.
The filing date is the way that the court determines when you become eligible for a second discharge. Cooperate with the trustee. A Chapter 13 trustee is appointed, basically to represent the court and the creditors.
The trustee will review your filing papers and may ask you to provide additional information if necessary. It is your obligation to cooperate with the trustee to earn your discharge.
Attend the meeting of creditors. In a Chapter 13 case, as in any other bankruptcy case, the trustee will convene a meeting of your creditors. The trustee and creditors will review your petition and schedules and have the opportunity to question you about them.
You need to attend the meeting and cooperate by answering all their questions. Make your plan payments. It is your responsibility to make your monthly payments on time. The trustee will work with you to let you know when and to whom to make your payments. You generally will write a single check each month to the trustee, rather than paying each individual creditor.
If you default on the payments, you risk losing the discharge in your Chapter 13 case. Obtain your Chapter 13 discharge. In Chapter 13, your discharge is delayed until after you make all of the Chapter 13 plan payments.
Because the plan generally runs for 60 months 5 years , this will be quite some time after the initial filing date. Wait two years to file a second Chapter 13 case. This requirement in the Bankruptcy Code sets up a logical conundrum.
After you file your first Chapter 13 case, you must make payments for three to five years before your discharge can enter. However, the waiting period for a second filing is only two years from the first petition date.
In theory, this means that you could file a second Chapter 13 case while you are still making payments on the first case, and before you earn your first discharge. This creates some overlap and requires that you be very careful in your accounting. Then they are eligible to file the second Chapter 13 case right away. However, under some rare circumstances, you could have new obligations arise that you need to discharge in bankruptcy, after you have begun the first case.
You cannot add new obligations to a pending Chapter 13 plan, so you may want to open a second case. Method 3. Understand the legal strategy. A Chapter 7 case discharges any obligation you may have to pay unsecured debts. If you get in financial trouble again after obtaining a Chapter 7 discharge, you are not eligible for another Chapter 7 discharge for eight years.
However, you could file a Chapter 13 case in only half that time, but you will be required to make some payments to your creditors. Begin with a Chapter 7 case. You first will file a Chapter 7 case.
Use the ordinary petition and schedules. Work with the Chapter 7 trustee, attend the meeting of creditors, and obtain a Chapter 7 discharge. For a more detailed review of a Chapter 7 case, see File for Chapter 7 Bankruptcy. Make note of the date that you filed your Chapter 7 petition.
This date is important, because it measures the time before you are eligible to file again. As long as your petition and schedules are in order and the trustee and creditors do not take any action against you, your Chapter 7 discharge should enter within about days after you file your petition. Wait at least four years after the date of your Chapter 7 filing.
You are not eligible for a Chapter 13 discharge until at least four years after the filing date of your Chapter 7 case. This assumes, of course, that you earned a discharge in your Chapter 7 case. If the first case was closed or dismissed without a discharge, this time limit does not apply.
This is an extremely tricky area of the law. Whether you receive any benefits from this filing depends on your specific circumstances. Qualified and experienced legal representation is absolutely critical if you plan to try this unusual type of filing. Not necessarily.
Most people who file twice have worked out a strategy with their bankruptcy attorney to deal with their total financial situation, like in the case of Chapter 20 you just read about. Yes, there will be ramifications on your credit, however, there are also ramification to allowing unpaid debt to just remain out there.
Solving your debt problem allows you to move on and get a fresh start. In most instances, you case will be discharged. Rarely, when a debtor intentionally commits fraud against the creditor, will your discharge be denied.
Below are some examples of why you would be denied discharge:. If your previous bankruptcy did not go through, special waiting periods apply. How long you must wait depends on whether your bankruptcy case was dismissed or denied.
In most cases, if your bankruptcy is dismissed, you can file again right away. However, if it was dismissed due to certain factors, such as your failure as a failure to comply with legal requirements, you might need to wait days before you re-file. A prior dismissal could also affect the automatic stay of collection efforts that normally accompanies a bankruptcy filing.
If your previous bankruptcy resulted in a denial of final discharge, you are generally eligible to file again immediately. Filing for bankruptcy is complex , and legal waiting periods make subsequent bankruptcies even more complicated than first bankruptcy filings. An experienced bankruptcy attorney can walk you through the laws and regulations that govern your particular case.
He or she can help you choose the type of bankruptcy to file that will make the most sense for you. The attorney can explain this complex area of the law in simple terms so that you will be able to completely understand what happens if you file bankruptcy twice.
Offen today at to schedule your free initial consultation. A native to the Philadelphia area, Mr. Using Upsolve to file bankruptcy in December of last year was one of the How difficult is it to do my own chapter 7? If your first bankruptcy did not result in an order of discharge, in most circumstances you can file again right away. For Chapter 13 bankruptcies, cases can be dismissed for failure to make all the required plan payments. In any of these examples, chances are the bankruptcy was dismissed without prejudice, meaning you should be able to file again right away.
If your case was dismissed because you failed to appear for a required hearing other than the meeting of creditors or ignored a court order, the court may order that any additional bankruptcy filings are barred for days.
There is another circumstance where this required waiting period may be ordered, which has to do with the automatic stay. The automatic stay is a benefit in bankruptcy that stops any collection effort, like a foreclosure or garnishment , in its tracks, as soon as you file your case. The stay remains in effect throughout your case unless a court order removes or lifts the stay, most often the result of a creditor filing a request or motion to do so. If you voluntarily dismissed the case after a creditor filed a motion for relief from the automatic stay , it is likely the court will impose a 6 month waiting period, since that suggests that you were not filing the case in good faith, but to avoid or at least delay a foreclosure or repossession.
Filing multiple bankruptcies in a short time period can also impact the length of the automatic stay or whether it applies at all. You can always consult a bankruptcy attorney , most of whom offer a free consultation, to determine if there are any restrictions on filing bankruptcy again. The rest of this article will focus on filing a second bankruptcy after you received a discharge in the first case.
In that scenario, the time limits differ based on what chapter of bankruptcy you filed originally and what chapter you are looking to file for the second one. This waiting period for how often you can file bankruptcy is based on the timing of your filing date, not the discharge. If you filed Chapter 7 the first time and are now looking to file Chapter 13, you need to wait 4 years from your original Chapter 7 filing date to file Chapter Keep in mind, however, that the time limits are if you are hoping to receive a second discharge.
You might decide to file a Chapter 13 after a previous Chapter 7 without the goal of discharge if you are now behind on a secured debt that you want to keep like your house or car and need the plan to catch up on payments.
If you filed a Chapter 13 and wish to file a second Chapter 13 you will need to wait 2 years from your previous Chapter 13 filing date to be able to get a discharge in the second case. If your previous bankruptcy was Chapter 13 and now would like to file Chapter 7 and be eligible for discharge you will need to wait for 6 years from your original filing date.
Just as there can be any number of reasons that you needed to file your first bankruptcy, there can be circumstances where it makes sense to file a second one. If you find yourself in a tough financial situation after bankruptcy, the above time limits can help you determine when you can file for another one. You can also pursue other options for debt relief if you are not able to file bankruptcy again or would prefer to avoid it a second time.
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