Anyone can suffer financial difficulties. Sometimes, the only recourse a person has is to seek financial help through the judicial system. The bankruptcy application can help those with many debts to look for solutions for problems such as the payment of credit card debts, medicine bills and other financial obligations towards their creditors.
For many, going through the bankruptcy process once is enough to recover financially. These people can start again and lead a healthy financial life. However, it is possible that some have not learned the financial lessons or that new adversities have arisen and that they end, again, in a hurry.
Types of bankruptcies
The two most common forms of personal bankruptcy are bankruptcy under Chapter 13 and under Chapter 7 of the Bankruptcy Act of the United States. The Chapter 13 bankruptcy consists of a restructuring of personal debts. The person making the request agrees to create a payment plan and pay his creditors a portion of what he owes them. When the payment plan ends for three to five years, the court will exempt the debtor from any remaining debt and the debtor may begin to operate again. In the Chapter 7 bankruptcy, the debtor asks the court to be exempted from its financial obligations. If the bankruptcy is granted, the debts of the applicant will be exempted and it will be considered that the latter is free of debts.
How many times can a personal bankruptcy order be placed?
The bankruptcy application is the last resort solution to a financial problem and should not be taken lightly. Although most people who apply for bankruptcy law do so because they can not pay their creditors after losing a job; Some others apply for bankruptcy to get rid of debts they do not want to pay.
To prevent people from using bankruptcy as a means to avoid paying their creditors, the court system limits the number of times a person can apply for bankruptcy protection. Bankruptcy under Chapter 7 can be requested once every eight years. If a person enters a payment plan under Chapter 13 and fails to comply with the corresponding obligations or requests the cancellation of the plan, six years must elapse before the same person can apply for another bankruptcy under Chapter 13.
The Waiting begins at the time of the initial presentation; not at the moment of the exemption of debts. For this reason, a person who has completed a payment plan under Chapter 13 can almost immediately file for another bankruptcy order under Chapter 13 or Chapter 7.
If a person applies for Chapter 13 bankruptcy, but then their financial situation is modified so that the scheduled payments are too high or they prefer to obtain exemption from their debts, they will change from a Chapter 13 bankruptcy to a bankruptcy application. in accordance with Chapter 7. When this occurs, the payment plan is stopped and the person’s assets are liquidated to settle the debts with the creditors. For this type of presentation there is no waiting period; but if Chapter 7 bankruptcy is granted, the person must wait eight years to start another bankruptcy under Chapter 7 or six to file for Chapter 13 bankruptcy. In the event that the bankruptcy application is dismissed, the waiting period to re-place an order will be 60 to 180 days, depending on the state.
While there is no limit to the number of times a person can place the bankruptcy order, with each presentation, the number of assets that can not receive protection increases. For example, in the first presentation, it is possible that two vehicles were protected, which were kept by the debtor. However, in the second presentation, it is likely that the court will determine that only one of the vehicles will receive protection and that the other must be sold to pay the creditors. This is another way to discourage abuse of the bankruptcy system.
The bankruptcy process is not only the last resort to go to, but it must also be managed by a legal professional. Bankruptcies often require the timely submission of a myriad of forms and documentation; otherwise, it is possible that the process is in danger. Who wants to make a bankruptcy application, you should contact a legal professional to consult on the different options of the process in order to make the best decision.
Speak Today with a Lawyer Qualified in Bankruptcy
This article aims to be useful and informative. But legal issues can be complicated and stressful. A Lawyer bankrupt can meet your particular legal needs, explain the law and represent you in court. Take the first step now and contact a qualified Lawyer bankrupt near you to discuss your specific legal situation.