While not usually the case, in some special circumstances an individual who files bankruptcy may eventually need to file bankruptcy again. Contrary to popular belief the time period you must wait between bankruptcy filings is not 7 years. This seven year waiting period comes from the bible where the Children of Israel were commanded to forgive debts at the end of every 7 years (see Deuteronomy 15:1-2).
Under the United States’ Bankruptcy Code there really is no prohibition from actually filing successive bankruptcy cases, but there is a limitation on receiving forgiveness of debts if a second bankruptcy is filed within a specific period of time after a prior case. The length of time an individual must wait between filing separate bankruptcy cases depends on the type of chapter the individual files.
If you file Chapter 7 bankruptcy and are forgiven of debt you cannot file another chapter 7 bankruptcy (and receive forgiveness of debt) for at least 8 years. If you want to file chapter 13 after filing a chapter 7, then you must wait at least 4 years.
If a person files Chapter 13 bankruptcy and receives a forgiveness of debt the waiting periods are shorter. If you want to file a chapter 7 after a chapter 13, then you must wait 6 years. If you want to file another chapter 13 after a prior chapter 13 bankruptcy then you must wait only 2 years.
In most cases the waiting period is measured from the filing date of the first case to the filing date of the second case. If you think you may need to file bankruptcy but have filed bankruptcy in the past, call to set up a free consultation. You have more options than you think.
Call experienced Arizona Bankruptcy Attorney, Benjamin Skinner at JacksonWhite today! (480) 648-8975.