Bankruptcy is a frightening word, and it is even worse if it strikes twice. There is a lot of conflicting information about bankruptcy details, and people who are facing financial troubles can get even more overwhelmed.
You may have heard that to file for your second bankruptcy, you need to wait for some time. This is true, but the good part is that you can file for bankruptcy any number of times, though the outcomes of your repeated filings are limited.
There is no official period to wait before filing for second bankruptcy, but the debt discharge you’ll receive will be limited. If you meet the eligibility criteria for bankruptcy, you can file it. So if you want chapter 7 discharge, you have to wait for 8 years after you filed the earlier chapter 7 bankruptcy, or 6 years after you filed the earlier chapter 13 bankruptcy. And if you want chapter 13 discharge, you have to wait for 4 years after you filed the earlier chapter 7 bankruptcy, or 2 years after you filed chapter 13 bankruptcy.
While some debts are discharged after a bankruptcy, you cannot get a discharge of tax debt, student loan debt, spousal or child support debt, or any criminal debt. If you have more secured debts than unsecured debts, then you will not get the kind of debt relief that you might have expected. Unsecured debts can be discharged and provide the kind of relief you want.
There are many cases in which you cannot file for a second bankruptcy for a minimum of 180 days after you get bankruptcy dismissal. You will be responsible for taking credit counseling and filing the required paperwork to receive a discharge.
Filing for your second bankruptcy can influence your protection from creditors using an automatic stay. Throughout the process of bankruptcy, the automatic stay cuts short the collection attempts from your creditors. This automatic stay generally applies for 30 days, and if your earlier bankruptcy case was dismissed, you may not receive it.
You might be filing for your bankruptcy for the second or third time- the most important thing is to get help. Consult some good bankruptcy lawyers as they can guide you through hard financial times.