Changes to the bankruptcy code have resulted in the implementation of time limits between bankruptcy filings and when a debtor is eligible to receive a discharge.\u00a0 These time limits depend on the type of bankruptcy the debtor filed previously and the type of bankruptcy the debtor is attempting now.\u00a0 The time limits are determined by looking at when the first case was filed, not at when the first case received a discharge.\u00a0 If the debtor has filed a previous bankruptcy case, the waiting period starts from the time the previous case was filed.\u00a0 The time limits are as follows:<\/p>\n
Prior Bankruptcy<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 New Bankruptcy<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Waiting Period<\/span><\/p>\n Chapter 7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Chapter 7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8 Years<\/p>\n Chapter 7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Chapter 13\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6 Years<\/p>\n Chapter 13\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Chapter 7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4 Years<\/p>\n Chapter 13 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Chapter 13\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2 Years<\/p>\n Many times, after seeing this chart, individuals will think that they are not able to file for bankruptcy again for a certain length of time.\u00a0 However, this is not necessarily true.\u00a0 The time limits prevent individuals from receiving a discharge through a bankruptcy, but they do not always prevent individuals from filing another bankruptcy case.\u00a0 It is possible to file a bankruptcy case and receive the protection from creditors the bankruptcy filing imposes without the potential for a discharge.\u00a0 Depending on your specific case, this could be beneficial to you.\u00a0 Providing the reason you are filing, the length of time until a discharge can be received,\u00a0 and the type of bankruptcy you want to file, you may be able to file a Chapter 13 bankruptcy. This would assist with postponing garnishments, foreclosures, repossessions, and other types of collection by creditors.<\/p>\n For example, if a debtor just received a discharge through a Chapter 7 one year ago, and now they are behind on mortgage payments for a house that they want to keep and have a pending foreclosure, would they be of luck? Definitely not! A Chapter 13 plan can be proposed to pay the back payments on the house over 48 months. At the end of the 48 months, as long as all of the post-petition mortgage payments are made as well, the client is caught up on their house. Even though no discharge is received, since the waiting period for a Chapter 7 filing to a Chapter 13 filing is six years to be eligible for a discharge, the bankruptcy filing was still beneficial to the client.\u00a0 They caught up on their house, and are able to keep it.<\/p>\n Depending on what debts you have and your income, a Chapter 13 with a discharge can provide many of the same benefits of a Chapter 7 without the longer waiting period. While many individuals do not like the idea of entering into a repayment plan, if you are eligible for a discharge through a Chapter 13, but not a Chapter 7, do not automatically eliminate the possibility of a Chapter 13 bankruptcy being a viable option for you.<\/p>\n For information on your specific situation, call your St. Louis Bankruptcy attorney<\/a> to schedule a free consultation. An attorney from our office will provide you with the information that you need to make an informed decision.<\/p>\n","protected":false},"excerpt":{"rendered":" Changes to the bankruptcy code have resulted in the implementation of time limits between bankruptcy filings and when a debtor is eligible to receive a discharge.\u00a0 These time limits depend on the type of bankruptcy the debtor filed previously and … Continue reading