By Cara O'Neill, Esq.
While there is no limit to how many times you may file bankruptcy, in order to receive a discharge of your debts, the appropriate waiting period must elapse between filings. The court does not prevent you from prematurely filing a petition even though it is too early to receive a discharge because there are times when doing so makes sense - just not for most people. But filing at the wrong time can significantly worsen your financial situation.
In fact, filing a Chapter 7 petition prematurely, or converting from a Chapter 13 to a Chapter 7, can be disastrous. Because Chapter 7 cases cannot be automatically dismissed, if you find yourself in a Chapter 7 case before you are eligible for a discharge, your assets will be liquidated at fire sale rates and, after the bankruptcy trustee takes his or her cut, dispersed to your creditors. But without being eligible for a discharge of debts, you’ll still owe your creditors the remaining balance.
Obviously, there isn’t much benefit to this scenario, and as such, timing is everything. The chart below provides an overview of discharge eligibility timeframes in the most common situations. If you are unsure about your situation, it is important to speak with an attorney who understands these issues, such as Cara O’Neill, a professional bankruptcy attorney in Roseville, California.
Chapter 7 to Chapter 7. Pursuant to Bankruptcy Code section 727(a)(8), eight years must elapse between the filing of the first Chapter 7 petition and the second to be eligible for a second discharge.
Chapter 7 to Chapter 13. Pursuant to Bankruptcy Code section 1328(f)(1), four years must elapse between the filing of the Chapter 7 petition and the Chapter 13 petition to be eligible for a second discharge. If the Chapter 13 plan isn’t confirmed, the case should be dismissed rather than converted to a Chapter 7 if filed sooner than eight years before the original Chapter 7, because the eight year waiting period will apply.
Chapter 13 to Chapter 7. Pursuant to Bankruptcy Code section 727(a)(9), six years must elapse between the filing of the Chapter 13 petition and the Chapter 7 petition to be eligible for a second discharge. While a few exceptions may apply, you should contact a professional, such as Cara O’Neill, a bankruptcy attorney in Roseville, with the facts of your particular case.
Chapter 13 to Chapter 13. Pursuant to Bankruptcy Code section 1328(f)(2), two years must elapse between the filing of the original Chapter 13 petition and the second Chapter 13 petition to be eligible for a second discharge.
A practicing bankruptcy attorney in Roseville, California, Cara O’Neill is available for consultation on cases situated in counties within the Sacramento division of the Eastern California Bankruptcy Court, including Siskiyou, Modoc, Trinity, Shasta, Lassen, Tehama, Plumas, Glenn, Butte, Sierra, Colusa, Sutter, Yuba, Nevada, Placer, Yolo, El Dorado, Sacramento, Solano, Amador, Alpine, San Joaquin and Mono counties.
Tags: Chapter 7 Bankruptcy, Filing Bankruptcy a Second Time, Filing Chapter 7
In fact, filing a Chapter 7 petition prematurely, or converting from a Chapter 13 to a Chapter 7, can be disastrous. Because Chapter 7 cases cannot be automatically dismissed, if you find yourself in a Chapter 7 case before you are eligible for a discharge, your assets will be liquidated at fire sale rates and, after the bankruptcy trustee takes his or her cut, dispersed to your creditors. But without being eligible for a discharge of debts, you’ll still owe your creditors the remaining balance.
Obviously, there isn’t much benefit to this scenario, and as such, timing is everything. The chart below provides an overview of discharge eligibility timeframes in the most common situations. If you are unsure about your situation, it is important to speak with an attorney who understands these issues, such as Cara O’Neill, a professional bankruptcy attorney in Roseville, California.
Chapter 7 to Chapter 7. Pursuant to Bankruptcy Code section 727(a)(8), eight years must elapse between the filing of the first Chapter 7 petition and the second to be eligible for a second discharge.
Chapter 7 to Chapter 13. Pursuant to Bankruptcy Code section 1328(f)(1), four years must elapse between the filing of the Chapter 7 petition and the Chapter 13 petition to be eligible for a second discharge. If the Chapter 13 plan isn’t confirmed, the case should be dismissed rather than converted to a Chapter 7 if filed sooner than eight years before the original Chapter 7, because the eight year waiting period will apply.
Chapter 13 to Chapter 7. Pursuant to Bankruptcy Code section 727(a)(9), six years must elapse between the filing of the Chapter 13 petition and the Chapter 7 petition to be eligible for a second discharge. While a few exceptions may apply, you should contact a professional, such as Cara O’Neill, a bankruptcy attorney in Roseville, with the facts of your particular case.
Chapter 13 to Chapter 13. Pursuant to Bankruptcy Code section 1328(f)(2), two years must elapse between the filing of the original Chapter 13 petition and the second Chapter 13 petition to be eligible for a second discharge.
A practicing bankruptcy attorney in Roseville, California, Cara O’Neill is available for consultation on cases situated in counties within the Sacramento division of the Eastern California Bankruptcy Court, including Siskiyou, Modoc, Trinity, Shasta, Lassen, Tehama, Plumas, Glenn, Butte, Sierra, Colusa, Sutter, Yuba, Nevada, Placer, Yolo, El Dorado, Sacramento, Solano, Amador, Alpine, San Joaquin and Mono counties.
Tags: Chapter 7 Bankruptcy, Filing Bankruptcy a Second Time, Filing Chapter 7