Reaffirmation Agreements

Posted on October 5, 2012 by

When filing for bankruptcy, debtors are faced with number of very important decisions.  Some of the most important decisions made pertain to what they are going to do with the property they own.  Through bankruptcy debtors can choose to surrender property without any penalties and without facing any deficiencies; This even applies to property that has a remaining loan balance on it.  Conversely, debtors are also able to keep property, or retain it; they can even keep property that has a remaining loan balance on it.  Most often, debtors decide they need to keep their cars or homes.  If a debtor chooses to keep certain property with remaining loan balances, many times the lender will require the debtor to sign a reaffirmation agreement.

Reaffirmation agreements are a voluntary agreement between the debtor and a lender that must be filed within sixty days of the meeting of creditors, or before the case is closed.  A reaffirmation agreement is basically stating that they debtor is agreeing to continue to make payments on the item as they would have if they did not file for bankruptcy. In other words, the debtor will be making payments in accordance with the terms of the original agreement.  If a debtor chooses to sign a reaffirmation agreement, he or she is completely responsible for the particular debt.  Once a debtor signs a reaffirmation agreement, they still have the option to rescind the agreement within sixty days of when it was filed. 

Deciding to sign a reaffirmation agreement is a very important decision, and there are many factors that debtors should consider when doing so.  If you are desperately wanting to keep certain property that has sentimental and/or practical value, like a house or a car, a reaffirmation agreement will allow you to do so.  However, debtors need to take into account whether or not they can actually afford to make payments on those properties.  If a debtor signs a reaffirmation agreement and consequently cannot make payments, he or she can find  his or her self back in financial trouble once again.  A reaffirmation of a debt will essentially eliminate the fresh start aspect of Chapter 7 bankruptcies.  If debtors are unsure if they can make the payment, or think they might be able to scrape by to make them, they should really think about if it is worth it.  Some debtors might think that they will not be able to find another lender who will help them finance something like a car post filing; however, there are lenders that actually specialize in helping people who have filed for bankruptcy. 

Additionally, debtors should also consider other financial aspects of a reaffirmation agreement.  By signing a reaffirmation agreement, the debtor will incur attorney’s fees, fees from the lender that their debt is through, and they will still have to pay their monthly bill for the property. 

If you are filing for bankruptcy and are interested in reaffirming your property, contact a St. Louis Bankruptcy Attorney today!

Posted in Bankruptcy filing, Bankruptcy General, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Reaffirmation Agreements, Uncategorized | Comments Off on Reaffirmation Agreements

Surrendering your House through Bankruptcy

Posted on September 20, 2012 by

Falling behind on your mortgage can be extremely stressful, and at a certain point, many people decide that they no longer want to keep the house that they own.  When you file for bankruptcy, you have the option to surrender your house, which means that you are no longer responsible for the mortgage.    Usually, once you surrender the house, your mortgage company will move forward with foreclosure proceedings to take the house back so they are able to sell it to a new person.  However, sometimes the mortgage company does not move forward with foreclosure right away, and that is when debtors can get into trouble.

When you surrender your house through bankruptcy, you still are responsible for the house. This is because your name will still be on the deed of the house, even though you will not be responsible for the mortgage anymore.  What does this mean for homeowners?  It means that you will still need to maintain the upkeep of the house until the bank moves forward with foreclosure proceedings and sells the house to a new owner.  There are a few simple things that debtors who surrender their houses should do to prepare for this.

1. Make sure that you retain homeowner’s insurance on the house.  If something happens to the house itself, like a fire, or flooding, you can still be responsible for the damage that occurs.  Additionally, if someone hurts themselves on your property, you can be liable for any injuries or damages.  Maintaining homeowner’s insurance will help protect you from being responsible for any accidents on the property.

2. Maintain the upkeep of the house.  The city can still fine or cite you, as the home’s deed owner, for things like an unkempt lawn, or  a porch that needs to be painted.  If these types of fines and tickets are ignored for extended amounts of time, some cities even issue arrest warrants for people.  Doing simple tasks like mowing the lawn can end up saving you money and a big hassle in the future.

3.  Prepare your house for changing seasons.  Make sure that windows are closed, and that pipes are clear and drained for the upcoming changing seasons.  If the temperatures drop unexpectedly, and the pipes burst because you did not drain them in preparation, you are responsible for the damages.

If something happens to or on your property, you are still responsible for any damages that may occur.  Failing to do these simple steps will not affect your bankruptcy; however, it will save you from potentially dealing with a very large hassle.  Fines or repair bills that arise after the filing date of the bankruptcy are not included as a part of the debts that are able to be discharged. If you are considering filing for bankruptcy and are interested in surrendering your house, please contact a St. Louis Bankruptcy attorney today.

Posted in Bankruptcy filing, Bankruptcy General, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Foreclosure | Comments Off on Surrendering your House through Bankruptcy

What Will Happen to your House if you File for Bankruptcy?

Posted on September 20, 2012 by

The risk of losing your home can be one of the most daunting aspects of being in a tough financial situation. Many people fear that they will lose the most important asset they own: a place to live.  After trying solutions like loan modifications with mortgage companies, many people are faced with the option of filing for bankruptcy to help save their homes.  Fortunately, filing for bankruptcy can help you keep your home.

One of the most common reasons people file for bankruptcy is that they are trying to keep their homes.  When your home is set for foreclosure, one way to stop the bank from taking your home is to file a chapter 13 bankruptcy.  When you file a chapter 13 bankruptcy, an automatic stay goes into effect immediately.  The automatic stay will stop any foreclosure proceedings, and will, at the very least, give you more time in your home.  The chapter 13 bankruptcy will put all of your late payments, or arrears, into the chapter 13 repayment plan; this will give you a chance to catch up on arrears monthly over the length of your Chapter 13 plan. You will still be responsible for your ongoing mortgage payments, but as stated before, a chapter 13 bankruptcy can help you keep your home.

If you are interested in filing a Chapter 7 bankruptcy, there are also ways for you to keep your home.  Generally, if you are current on your home mortgage payments, you will be able to keep your home. However, this only applies if you do not have a large amount of equity in your home.  Should you have an excessive amount of equity in your home, the Trustee may decide that you need to sell your home in order to use the money to pay back some of your creditors.  Fortunately, each state has a certain set of what are called exemptions that apply to your property; there is a dollar amount allotted for different types of property that help debtors keep some of their assets.  For people who own homes, you can “exempt” a certain amount of equity in your home, allowing you to keep your house.  For example, in Missouri, the Homestead Exemption allows home owners to exempt up to $15,000 in equity in their homes.  This is an excellent option for people who have managed to stay current on their mortgage payments, but have been struggling due to other debts.

There seems to be a misconception that people who file for bankruptcy will lose their homes; however, in many cases, filing for bankruptcy can help home owners save their homes.  If you have questions about your home, please contact a St. Louis Bankruptcy attorney today!

Posted in Uncategorized | Comments Off on What Will Happen to your House if you File for Bankruptcy?

Debts that will be Discharged Through Bankruptcy

Posted on September 20, 2012 by

After you receive your notice of discharge from the Bankruptcy Court, there are certain types of debt that will be discharged; In other words, there are certain types of debt that you will no longer be responsible for paying back to creditors.  While there are some types of debts that cannot be discharged, filing a Chapter 7 Bankruptcy will wipe out a majority of your unsecured debt.

The vast majority of people filing for bankruptcy are trying to get rid of credit card debts, and thankfully, Chapter 7 will succeed in clearing most credit card debts.  The only exceptions to this statement are if the case involves fraud or if the debtor purchased luxury items immediately before filing.  However, if neither of those two situations apply, credit card debt will be discharged.

The next most common reason people decide to file for Chapter 7 Bankruptcy is a direct result of medical bills.  With the rising cost of medical treatment and the large amount of people with inadequate or even no medical insurance, many people today find themselves overwhelmed by medical bills.  Fortunately, medical bills will be discharged through filing for Chapter 7 Bankruptcy.  In fact, billions of dollars in medical bills are discharged every year through bankruptcy.

In addition to credit card debt and medical bills, lawsuit judgments are also an extremely common reason individuals file for bankruptcy.  Most civil lawsuits that are filed are about money, and if someone wins one of these lawsuits against you, the court will issue a judgment that states you need to pay.  If you do not pay once this judgment has been granted, the judgment holder is entitled to collect it. They can do this numerous ways, including grabbing your bank account, garnishing or levying your wages, or by placing a lien on your home. Most judgments are discharged in Chapter 7 Bankruptcy; however, there are some exceptions to this.  Generally speaking, though, if you have a garnishment on your paycheck filing for bankruptcy may be an option for you.

Increasingly today, things are leased rather than owned. When you break a lease agreement, subsequently, there are often severe penalties for doing so.  Additionally, so debtors have obligations under a signed contract doing something like selling real estate, buying a business or performing artistically.  When these contracts are broken, some debtors are sued for breach of contract damages.  While there are some rare exceptions to this, monetary damages to the debtor for breaching these types of contracts can also be discharged through bankruptcy.

Chapter 7 Bankruptcy is a feasible option for many people who are struggling under mass amounts of unsecured debt. It gives debtors a chance to start fresh with a clean financial slate, and get back on their feet again.  Should you have additional questions about if a Chapter 7 Bankruptcy is the right option for you, please contact a St. Louis Bankruptcy attorney today!

Posted in Bankruptcy filing, Bankruptcy General, Chapter 7 Bankruptcy, Discharge of Debt, Medical Bills and Bankruptcy | Comments Off on Debts that will be Discharged Through Bankruptcy

Why do you Need an Attorney to File Bankruptcy?

Posted on September 20, 2012 by

One of the challenges of getting your financial situation in order is getting an accurate, trustworthy, and unbiased assessment of what your particular options are, especially when you are considering filing for bankruptcy.

Despite their best intentions, your friends and family members may misinform you about what your best options are.  Your financial situation applies only to you, and even though one solution may have worked for someone you know, it may not apply or be helpful to your situation.  Groups of people such as credit counselors and debt consolidators may also mislead you.

Credit Counselors, who work to help individuals with preparing budgets and dealing with creditors, may not actually have your best interest at heart despite appearing this way.  Many credit counseling agencies even work on creditors’ payrolls; when you “organize a budget to repay your creditors”, obviously, your creditors are going to benefit.  So, while these agencies appear to assist you with organizing your financial situation, what they are potentially doing is inappropriately discouraging you from filing for bankruptcy.

Debt consolidation agencies offer to replace all of your debts with a single, “low-interest” loan.  Essentially, they are asking people to borrow more money to assist with paying back the money they already owe on their debts.  Many people become enamored with this idea because they feel overwhelmed by the amount of monthly bills they have to pay; however, borrowing more money to get out of debt just does not work.  Many times these agencies solely aim to make a profit off of people who are already in financial turmoil.

You need to make a sound decision when deciding how to handle your financial situation, and that is how a St. Louis Bankruptcy attorney will be able to assist you.  While it is true that an attorney will make some profit on assisting you with your financial situation, they are also going to inform you of what your best options are.  No reputable attorney will file a case with the bankruptcy court if it is not in your best interest to do so.

If you do decide that bankruptcy is the best option for you and your financial situation, it is a good option that you seek the assistance of an attorney.  Bankruptcy law is incredibly complex, and very difficult to navigate on your own.  With regular changes being made to the law, attorneys are the most qualified to handle your case appropriately.   Contact an experienced St. Louis Bankruptcy Attorney for additional information!

Posted in Bankruptcy filing, Bankruptcy General, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy | Comments Off on Why do you Need an Attorney to File Bankruptcy?

Filing Bankruptcy in Good Faith

Posted on September 20, 2012 by

As more and more debt builds up, many people seek filing for Chapter 7 bankruptcy as an option for relief.  Chapter 7 bankruptcy can assist people with large amounts of unsecured debts, like credit card debt, start fresh by wiping out their debts.  Additionally, filing a Chapter 7 does not mean that you will have to give up all of your personal property.  In many cases, individuals are allowed to keep the majority of their personal property through exemptions that are provided through the Bankruptcy Code.

Often times, many people will realize how great the bankruptcy system can be; generally, you file your case with the assistance of a St. Louis Bankruptcy Attorney, and a few months later, you’re free from the burden of your previous debt.  With the knowledge that you can keep the majority of your property and discharge your unsecured debts, many people are tempted to “cheat” the bankruptcy system by spending large amounts of money on items that they never intend to pay back immediately before filing, or by lying about the value of some of their assets. These things, however, are forbidden by the Bankruptcy Code.

When filing for bankruptcy, you are required to do so “in good faith”.  This means that you not only are being honest about the amount and value of assets you many own, but also are being honest about the burden of your financial situation.  While it is very tempting to lie about the value of your assets in an attempt to keep meaningful personal items, it is very unwise to do so.  If the Trustee, the person controlling your bankruptcy estate, finds out that you lied about the value of your property, or own something you did not disclose, you will face serious consequences.  It is always better to be honest about your assets; many times, through exemptions or even an agreement with the Trustee, you will be able to keep things of personal and/or monetary value.

Filing in good faith additionally applies to the burden of your financial situation. If the bankruptcy court sees that you have been excessively using your credit cards, or have been buying luxury items like designer clothing and cruise vacations, in the time immediately before filing, they will not allow you to discharge these debts.  The creditor will file an objection to your case, and if the court finds their argument to be legitimate, you may have to continue to pay back that particular debt.   There are some allowances for situations where you have spent large amounts immediately before filing; however, generally speaking, it is not permitted by the Bankruptcy Court.

While it is tempting to try to get away with keeping particular assets, or to buy luxury items since the debt will be discharged, it is always best to be honest about your situation.

Posted in Bankruptcy filing, Bankruptcy General, Chapter 7 Bankruptcy, Discharge of Debt | Comments Off on Filing Bankruptcy in Good Faith

Is Filing for Bankruptcy an Option for Managing Student Loans?

Posted on September 5, 2012 by

For the first time in American history, the total amount of student loan debt has surpassed the total amount of credit card debt.  With so many Americans facing an enormous, and overwhelming amount of debt, many are left wondering what their options are.  Because so many people turn to bankruptcy to help them manage other debts, something that numerous people wonder about is whether they can have their student loans discharged, or wiped out, through filing for bankruptcy.

Unfortunately, it is highly unlikely that a debtor will be able to have his or her student loans discharged through filing for bankruptcy.  This is, in large part, due to situations in the past.  In previous years, many individuals would take out tens of thousands of dollars in students loans; then, immediately after graduating from college or completing their schooling,  these individuals would file for bankruptcy without making an attempt to pay their debts off. This left many universities in situations where they were losing enormous amounts of money and were vulnerable to lose even more.  In an attempt to protect public and private universities from people filing for bankruptcy in bad faith, the Bankruptcy Code adopted new practices that make it extraordinarily difficult for individuals to be able to have their student loans wiped out by filing for bankruptcy.

For a debtor to have his or her federal or private student loans discharged in bankruptcy, the debtor has to prove that repaying the loans will impose an “undue hardship”.  While it may seem like this would be a likely state of being for people who are considering filing for bankruptcy, proving an undue hardship is next to impossible.  To prove an undue hardship, the three part Brunner Test is used.

The Brunner Test states:
(1) That the debtor cannot maintain, based on current income and expenses, a minimal standard of living for the debtor and dependents if forced to pay off student loans;

(2) That additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

3) That the debtor has made good faith efforts to repay the loans.

(Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987).

Essentially, the debtor needs to prove that they are, and will be, in a state of poverty if they continue to pay the loans, that this state of present poverty is permanent, and that despite this, the debtor has still attempted to pay their loans.  Only in very rare cases have people been granted undue hardships and been able to discharge their student loan debt.

Despite the unlikelihood of discharging your student loan debt, by filing a Chapter 13 bankruptcy, debtors can add their student loans to their repayment plans.  This means that for the duration of the plan (3-5 years), the student loan will be paid through the bankruptcy plan payments.  You will still owe the amount left on your student loans when your bankruptcy is completed, but for the length of your Chapter 13 plan, you will be paying a court-determined amount that will include your student loans.

Should you have questions regarding how your student loans can be treated when filing for bankruptcy, contact a St. Louis bankruptcy attorney today!

Posted in Automatic Stay, Bankruptcy filing, Bankruptcy General, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Discharge of Debt, Student Loans | Comments Off on Is Filing for Bankruptcy an Option for Managing Student Loans?

Property and Exemptions in a Chapter 7 Bankruptcy

Posted on September 5, 2012 by

There is a common misconception regarding Chapter 7 Bankruptcy, that prospective filers fear they will end up losing everything when they file. This fear stems from people hearing that Chapter 7 requires people to give up all of their property to the bankruptcy court in exchange for all of their debt being wiped out.  This fear is simply not true.

In a Chapter 7 bankruptcy, it is true that when you file, all of your assets and property, ranging from your home, a car, jewelry, and your furniture, become a part of what is called the “bankruptcy estate”.  It is also true that the bankruptcy estate is “owned” by the bankruptcy trustee who is assigned to the case. However,  just because your property and assets are included in the bankruptcy estate does not mean you are automatically going to lose everything.  This is because each state has a set of “exemptions” that allow Chapter 7 bankruptcy debtors to keep up to a certain amount of assets; these dollar amounts apply to the property value and “exempt” them from being a part of the bankruptcy estate.  Generally speaking, if certain property is exempt or qualifies for an exemption, it means you get to keep the property.  Each state has different dollar amounts that apply to different types of property so an experienced bankruptcy attorney would be able to assist you with allotted amounts for each category of property you might own.

Placing a value on your property can become complicated, and some people may wonder how they are going to be able to place a value on everything they own. For some things, like a car, it is very simple to find the value; simply refer to Kelly Blue Book or NADA, and the price of your car, accounting for age and condition, is readily available to you. However, things like your family heirlooms, or your outdated computer, might be harder to place values on.  The Bankruptcy Code requires that debtors value their assets and property at “replacement value”; this means what could you reasonably get for that particular item on the open market today.  Many times, people get caught up in what they paid for the item when they bought it and forget to account for age and wear and tear.  A good place to start when attempting to place a value on your property is to think about how much you could reasonably get for it on a secondary market (like a garage sale or websites like Craigslist or EBay).

You, as the debtor, are responsible for placing values on your property when filing for bankruptcy.  In doing this, the bankruptcy court expects you to place these values in good faith.  This means that you placed reasonable values on your property, and put in a fair amount of research into finding out the market value of your property.  Although it is tempting to underestimate the value of property like your wedding rings, knowingly providing false information when filing for bankruptcy is perjury, which is a federal crime.  It is typically better, when in doubt, to overestimate, rather than underestimate the value of your property.

If you have additional questions, please contact a St. Louis Bankruptcy attorney today!

Posted in Bankruptcy General, Chapter 7 Bankruptcy, Exemptions, Protected Assets | Comments Off on Property and Exemptions in a Chapter 7 Bankruptcy

What are your Options When your Home is Facing Foreclosure?

Posted on September 5, 2012 by

With the tough economic times, many individuals find themselves falling behind on their mortgage payments and facing foreclosure.  Something that may come as a surprise to some individuals is that filing for bankruptcy can be an option to help save your home.

If you have fallen behind on your mortgage payments, Chapter 13 bankruptcy is an option you should consider to assist you in keeping your home.  In fact, one of the most common reasons a Chapter 13 bankruptcy is filed is to stop foreclosures and assist individuals with catching up on their mortgage payments.  Not only does filing a Chapter 13 bankruptcy assist with saving your home, it can also help reduce monthly mortgage payments.  Many times debtors feel that they cannot keep up with nearly any of their monthly bills, let alone their mortgage payments, and steep arrears and late fees.  By filing for Chapter 13 bankruptcy, however, debtors can find relief.

Chapter 13 bankruptcy is different from a Chapter 7 bankruptcy, in that it involves a repayment plan.  Based on various things like your income, what types of debt you have, and what types of property you have, a St. Louis Bankruptcy Attorney can assist with creating a repayment plan that will have to be approved by the court.  This plan will involve you paying the Trustee a set amount of money each month, over a period of three to five years.  With this monthly amount, the Trustee will then pay your creditors a certain amount of money each month.  This, essentially, offers the opportunity for individuals to reorganize outstanding debt, including missed mortgage payments.  While you will still, most likely, need to pay your regular mortgage payments, you will at least receive assistance with any arrearage amounts and other outstanding debts by filing for Chapter 13 bankruptcy.

When a Chapter 13 bankruptcy is filed, an automatic stay goes into effect immediately.  This means that any and all creditors are not allowed to take any actions against you or your property.  In regard to your home, this means that the automatic stay will stop your mortgage company from selling or foreclosing on your home.  This automatic stay will usually remain in effect for the duration of your Chapter 13 plan (this depends on the amount of bankruptcies the debtor has had pending in the last year).   As long as your remain current with your Chapter 13 plan payments, the automatic stay will remain in effect.  You will be able to keep your home, and will receive assistance with catching up on any missed payments.  It is important to note that if you fall behind on your plan payments, your case can be dismissed; this would mean that almost immediately actions to foreclose can take place.  However, as stated before, if you stay current on plan payments, filing for Chapter 13 bankruptcy will allow you to keep your home and stop any foreclosure proceedings.

Posted in Bankruptcy General, Chapter 13 Bankruptcy, Foreclosure | Comments Off on What are your Options When your Home is Facing Foreclosure?

When Can I File for Bankruptcy Again?

Posted on September 5, 2012 by

If you have filed for bankruptcy in the past, you know the relief it brought to your financial and personal situations.   It may have allowed you to get back on your feet and start fresh once again.  Unfortunately, though, many times due to unforeseen circumstances, people who have filed for bankruptcy in the past find themselves in financial turmoil once again.  This leads many to seek the same relief they gained through their previous bankruptcy. Thankfully, people have the option of filing for bankruptcy again as they did in the past.

When you have filed for bankruptcy in the past and are interested in filing for bankruptcy again, there are some important rules set forth by the Bankruptcy Code that you should be aware of. As a St. Louis Bankruptcy attorney can tell you, when filing for bankruptcy a second, or possibly more, time, there is a certain amount of years you have to wait before filing again to be able to have your debts discharged, or “wiped out”.  The amount of years between filing for bankruptcy again depends on the type of bankruptcy you are filing.

Chapter 7 bankruptcy, which generally “wipes out” all of your debt, is the worst chapter in the eyes of creditors because they will not be receiving any future payments from you after you file and receive your discharge.  Because of this, you have to wait the longest in between filing a Chapter 7 bankruptcy if you have already filed a Chapter 7 in the past.  The amount of years between filing a second Chapter 7 bankruptcy to receive a discharge is 8 years. A good way to think of this is that it is the worst situation for the creditors to be in, so you have to wait the longest to file this type of bankruptcy again.

If you have filed a Chapter 13 in the past and would like to file a Chapter 7 bankruptcy, you would have to wait 6 years between filing in order to receive a discharge.  Again, this is because Chapter 7 bankruptcy is the worst situation for creditors, so you have to wait longer to file this type of bankruptcy. You have a shorter amount of time in between filing Chapter 7 bankruptcy if you filed a Chapter 13 in the past, though, because Chapter 13 is the more ideal bankruptcy for your creditors.

Chapter 13 bankruptcy is a better situation for your creditors to be in because it involves a repayment plan that they receive money from.  Because of this, you typically do not have to wait as long to re-file this type of bankruptcy in an attempt to receive a discharge. If you have filed a Chapter 7 bankruptcy in the past, and would like to file a Chapter 13, you have to wait 4 years to file to receive a discharge.  Additionally, if you have filed a Chapter 13 and would like to file a second Chapter 13, you have to wait 2 years to file to receive a discharge.  A good way to think of this is just the opposite as a Chapter 7; Chapter 13 bankruptcies are better for creditors, so you don’t have to wait as long to file this type of bankruptcy to receive a discharge.

Years between filing to receive a discharge:

Chapter 7    —    Chapter 7 =     8 years

Chapter 13  —    Chapter 7 =     6 years

Chapter 7    —    Chapter 13 =   4 years

Chapter 13  —    Chapter 13 =   2 years

*It is important to note that the years between filing are from the date that your case was filed, not from the date of discharge. So, if you filed a Chapter 7 bankruptcy in January of 2005 and received your discharge in March 2005, you would be able to file a new Chapter 7 case to receive a discharge starting January of 2013.

You may have noticed that throughout this article, I have mentioned that you have to wait a certain amount of years to file a certain type of bankruptcy to receive a discharge. This is very important to be aware of because you can still file for bankruptcy even if you know that you are not going to receive a discharge of your debts.  In this case, you do not need to abide by the “years between filing” rules.

Typically, this comes up when someone is facing a foreclosure on their home.  An example of this is if you filed for a Chapter 7 bankruptcy and received a discharge 3 years ago, and decided to keep your home through that bankruptcy and now, 3 years later, you have fallen behind on your mortgage payments, and are facing foreclosure.  Many people would assume that in this situation, you would not have any options to assist you with keeping your home since it has only been 3 years since your previous bankruptcy case was filed and you received a discharge.  Not having any options with regard to bankruptcy, however, is a common misconception.  In this situation, you would be able to file a Chapter 13 bankruptcy to stop the foreclosure from proceeding, and to assist you with keeping your home, even though it has not been four years since your previous Chapter 7 bankruptcy case.  Essentially, you would be putting the amount that you are behind on your mortgage into a payment plan, allowing you to catch up on missed payments over time.  After the plan is completed, you will not receive a discharge, but it will allow you to keep your home.

Filing for bankruptcy multiple times can become very confusing if you do not know all of your options from the start.  Although there are time limits on when you can file for bankruptcy to receive a discharge, you still have the option of filing before those time limits have been reached, as long as you understand you will not receive a discharge.

Posted in Bankruptcy filing, Bankruptcy General, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy | Comments Off on When Can I File for Bankruptcy Again?