Let’s say you filed for Chapter 7 bankruptcy in the past, and now you find yourself in financial trouble again. Maybe you’re thinking of filing for Chapter 7 bankruptcy again, but don’t know if you’re eligible.
First, you need to remember that you’re concerned about your eligibility to receive a discharge in a Chapter 7 bankruptcy, not your eligibility to actually file the case. Sure, the whole point may be to get the discharge in Chapter 7, but always keep your terminology straight so you can communicate it better to your lawyer.
If you filed for Chapter 7 bankruptcy in the past then you must wait eight years from the date of your last bankruptcy discharge in order to file another Chapter 7 bankruptcy case that will result in a new discharge of debt. So if you filed on January 1, 2002 and filed a new Chapter 7 bankruptcy case on December 31, 2009 you will not be able to get a discharge in your new case. But if you file a new Chapter 7 bankruptcy case on January 2, 2010 then you will be eligible to receive a discharge in your new Chapter 7 bankruptcy case.
There’s an option you might want to review if you find yourself in financial difficulty within that eight year period. That’s Chapter 13 bankruptcy.
Under the current law, you are eligible to receive a discharge in a Chapter 13 case if you’ve gotten a previous Chapter 7 discharge more than four years ago. Using our example above, if you filed on January 1, 2002 an filed a Chapter 13 bankruptcy case anytime after January 1, 2006 you’re going to be able to get a discharge in your new case. Of course, this assumes you qualify for Chapter 13 bankruptcy and can make the case work for you. But at the very least, you’ve got options.
For people interested in reading the US Bankruptcy Code, you can check out 11 USC 727 and 11 USC 1328.
Photo courtesy of minxlj.
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