Bankruptcy can be a way to create a fresh financial start. Exactly how this works depends on the type of bankruptcy you file for. Chapter 7 bankruptcy requires the liquidation of non-exempt assets to pay back a portion of the debt, while Chapter 13 bankruptcy consolidates your debt into a repayment plan.
However, you may find yourself facing issues with debt again in the future. Some things are unpredictable, such as job loss or medical emergencies. Would you be able to file for bankruptcy again, or are you limited to just filing once?
Waiting periods
You can file for bankruptcy multiple times, but there are waiting periods that you have to adhere to. Exactly how long you have to wait depends on which type of bankruptcy you filed for originally and which one you want to use for your new filing.
For instance, perhaps you filed for Chapter 7 bankruptcy in the past. If you want to file for Chapter 7 again, you have to wait eight years. However, if you want the second filing to be Chapter 13, then you only have to wait four years.
On the other hand, perhaps you filed for Chapter 13 bankruptcy the first time. To file for Chapter 13 again, you have to wait two years. To use a Chapter 7 filing for a second time, then you have to wait up to six years.
Your legal options
You can see how the bankruptcy process is complex, but there are always options. It is important to be aware of your rights and the legal steps you can take at this time. Working with an experienced law firm can be beneficial.