The word “bankruptcy” can have a negative connotation, but in some cases, this is the best financial decision that you can make. Discharging your debts in a court of law is one way to gain a fresh start, and sometimes claiming bankruptcy is the only option available. There are certain situations that will prohibit you from filing again. For example, if you have previously filed for bankruptcy and received a discharge on your debts, and the court has determined that you may not file again, your options for bankruptcy are limited. Otherwise, there is no limit to the number of times that you can claim bankruptcy, and you are free to file again. In the case of a previous discharge of debts, there will be certain restrictions on your new bankruptcy claim. Specifically, there is a waiting period before you request to discharge your debts again.
What Restrictions Do I Face When Filing For Another Bankruptcy?
Depending on how you filed previously, there will be certain restrictions placed on when you can file for another bankruptcy. These include:
- The type of bankruptcy you filed before.
- The decision on the prior bankruptcy – if the debts were discharged, dismissed, or dismissed with prejudice (meaning that this is the final judgement and may not be claimed again).
- Time restrictions – When you can file again is determined by the type of bankruptcy you filed before.
What Are the Time Restrictions Placed on my Next Bankruptcy Claim?
The time restrictions determine when you can file for another bankruptcy. These are dependent on the previous type of claim that you were awarded:
- Chapter 7 – If you have already filed Chapter 7 you must wait for a minimum of eight years before filing Chapter 7 again.
- Chapter 13 – If you have previously filed for Chapter 13, there is a three to five year repayment plan in which you will be required to repay some, all, or none of your debts. You are able to file another Chapter 13 two years from the date that you originally filed.
- Chapter 7 (originally), Chapter 13 (now) – You may file a Chapter 13 claim four years after the date that you initially filed a Chapter 7 claim.
- Chapter 13 (originally), Chapter 7 (now) – You must wait for six years if you are requesting a full discharge on a Chapter 7 if you have already received a discharge of debts through a Chapter 13.
If this sounds a bit complicated, you are not alone. The rules and regulations around bankruptcy are strict for good reason, and understanding how to best proceed with a claim is crucial to your long term financial health.
Speak with a Salt Lake City Bankruptcy Lawyer Today
If you are considering filing bankruptcy for the first time, or again, it is in your best interest to speak with an experienced bankruptcy lawyer who can provide helpful information. The process of discharging debts in a bankruptcy can be complicated, and it is important to take the rights steps so that your claim is handled quickly without delay. The legal team at JLT Law has extensive experience working with bankruptcy and foreclosures. We can help you to file correctly, and advise you on the best way to go about a bankruptcy. Call us today at 801-797-2098 or contact us online to schedule an initial consultation.