Bankruptcy refiling is a common question potential clients ask. Can you refile a bankruptcy they ask. Yes, you can refile a bankruptcy. But the effect of a subsequent bankruptcy filing varies depending on how long it has been since you last filed bankruptcy. It also depends on how the prior bankruptcy concluded. Was the prior bankruptcy case concluded successfully? Did it result in a bankruptcy discharge, or was it dismissed. When a bankruptcy case is completed, and all goes well, the result is a discharge. A bankruptcy discharge eliminates your debt. With a Chapter 7 bankruptcy normally all your debt is discharged. In a Chapter 13 bankruptcy you commonly pay a portion of your debt, and then discharge what you cannot afford to pay. But if a case is dismissed, a discharge is not ordered by the bankruptcy court.
Refiling OptionsRefiling after a prior case was dismissed is common, and can usually be filed right after the prior case is dismissed. A bankruptcy refiling after the previous case was discharged may result in another discharge, or it may not. It depends how long between the bankruptcy filings.
If it has been 8 years since your last case was filed,
Normally a bankruptcy plan is initiated with the filing of a Chapter 13 bankruptcy. The Chapter 13 plan will provide the terms of your debt repayment. Both businesses and individuals can file. It will list how much you will pay back. For how long you will repay your
Not everyone is eligible to file bankruptcy. But those who are can eliminate, or discharge, their debts thought a bankruptcy filing. Limitations exist that may prevent some from filing bankruptcy and receiving a bankruptcy discharge. These impediments to a bankruptcy discharge may be previous bankruptcy filings, excess income or too much property. If eligible, though, a bankruptcy discharge order will result from a bankruptcy filing
Credit availability is, obviously, tied to debt. And credit availability is now back. Much of credit market dried up during the great recession in years past. Now credit is back. So is debt. And along with it the need for debt relief. There is no more comprehensive or complete recovery from debt than filing for bankruptcy. Again, that is why you are not alone filing bankruptcy.
Qualifying for Chapter 7 bankruptcy requires the filer to pass the bankruptcy means test. This, then, is the primary bankruptcy means test meaning. To “pass” the bankruptcy means test, the filer must demonstrate eligibility to file for Chapter 7 bankruptcy. What this means is that an individual or couple filing for Chapter 7 bankruptcy must prove eligibility for a Chapter 7 filing. To be eligible for filing Chapter 7 bankruptcy, filers must show, essentially, their living expenses exceed their income. Put another way, they owe more in living expenses than income earned. This recent news article clarifies many of the bankruptcy means tests basics.
Often consumers want to repay part of their debt. Though a bankruptcy discharge of