Filing for Bankruptcy for the Second Time

Welcome back to bankruptcy court. It has been a while. Then again, it has not been that long. Filing for bankruptcy protection can give you a much-needed reset and enable you to put the past behind you. For some people, that past is so painful that they spend the rest of their lives making every effort to avoid the circumstances that led them to file for bankruptcy the first time. 

As with divorce court and criminal court, though, some people are frequent attendees of bankruptcy court. If you file for bankruptcy more than once, do not think of it as a personal failing, no matter how much your in-laws may scold you for it. Bankruptcy courts exist because everyone has the right to discharge eligible debts they cannot pay when the only other option is to become destitute or to go out of business. This right applies even if you have filed for bankruptcy before because life is so expensive and so unfair that people often become overwhelmed by debts more than once. 

There are restrictions on how soon you can submit your bankruptcy filing, though.  If you are considering filing for bankruptcy for the second time and want to make sure that you satisfy all the legal requirements, contact an Oakland Chapter 7 bankruptcy lawyer.

How Long Do You Have to Wait After Your Bankruptcy Filing Before You File Again?

There is no limit to how many times you can file for bankruptcy in your lifetime. There is probably a senior citizen out there somewhere who has filed for bankruptcy every decade since his twenties and will happily do it again if his current marriage or business venture goes sour. In theory, a company could stay in business for hundreds of years, filing for bankruptcy every time its debts get out of hand.

The required waiting periods between bankruptcy filings are as follows:

·   Eight years between two Chapter 7 cases

·   Four years from a Chapter 7 case to a Chapter 13 case

·   Six years from a Chapter 13 case to a Chapter 7 case unless you finish paying off the repayment plan sooner

·   Two years between two Chapter 13 cases

When you file for bankruptcy, your main concern should not simply be how soon you can file again. Instead, you should consider which option will give you greater debt relief, protect your current assets, and help you avoid future financial hardship. If you have a steady job, Chapter 13 is a better option because there is no risk of the bankruptcy court liquidating your assets. If you do not have enough income to keep up with a Chapter 13 repayment plan, Chapter 7 is a better option. Most Chapter 7 filers do not have any non-exempt assets and can complete their cases without the bankruptcy court liquidating any of their property.

Contact the Law Office of Melanie Tavare About Filing for Bankruptcy

A debt relief lawyer can help you if you want to file for bankruptcy, but you have already filed at least once before. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.