How Often Can I File for Bankruptcy
Bankruptcy helps people who are overwhelmed by debt get a handle on the problem by either entering a repayment plan or liquidating assets as a means of repayment. While there is no limit to the number of times a person can file for bankruptcy in their lifetime, there are specific time limits that apply. If you have questions or concerns about bankruptcy, reach out to an experienced bankruptcy attorney for the help you need.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is liquidation bankruptcy that clears most of your unsecured debts off the books, including medical bills and credit card balances, without requiring a repayment plan. It’s important to note that there are certain income requirements that must be met for Chapter 7 bankruptcy. If your income exceeds the set limitation, however, Chapter 13 bankruptcy may be an option.
With Chapter 7 bankruptcy, an automatic stay that stops most creditors from pursuing collections is imposed. Any nonexempt assets you own will be sold to repay creditors, but if you have none, no repayment is required. As such, Chapter 7 bankruptcy is generally the best option for those with few assets and relatively low income – or for those whose debt is considerably higher than their nonexempt assets.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a reorganization bankruptcy for those who have amassed considerable debt but also have a regular source of income that allows them to engage in a repayment plan for at least part of their outstanding debts. Repayment plans are set for from three to five years, and during this time, creditors are legally barred from engaging in collection efforts. Unlike Chapter 7, Chapter 13 is not a liquidation, and you can generally keep all of your assets.
Time Limits
- If you file a Chapter 7 bankruptcy, you must wait at least eight years to file another.
- If you file a Chapter 7 bankruptcy, a Chapter 13 may be filed without a time constraint, except that you would not receive a discharge if the case is filed less than four years from the date the Chapter 7 was filed.
- If you file a Chapter 13 bankruptcy, you must wait at least six years before filing a Chapter 7 bankruptcy – or must pay off the Chapter 13 repayment plan in full prior to filing.
- If you file a Chapter 13 bankruptcy and receive a discharge, a Chapter 13 may be filed without a time constraint, except that you would not receive a discharge if the case is filed less than two years from the date the prior case was filed.
An Experienced South Carolina Bankruptcy Attorney Can Help
There is no maximum number of bankruptcies an individual can pursue in their lifetime, but there are legal strategies that can help you navigate a smoother path forward – while improving your financial situation considerably in the process. The dedicated bankruptcy attorneys at Reed Law Firm are well-positioned to skillfully support your journey toward financial freedom, and we welcome your inquiries.
To learn more about what we can do to help, please don’t put off reaching out and contacting us online or calling us at 803-726-4888 in Columbia, South Carolina, and at 843-679-0077 in Florence, South Carolina, today.
