When Can I Re-file for Chapter 7 Bankruptcy?

When Can I Refile for Chapter 7 Bankruptcy?
A common question we hear is, “I have filed for bankruptcy before. When can I refile a chapter 7 bankruptcy case?”.  The answer to this question -- for Fresno and the rest of California -- is the following:

11 USC Code section 727(a)(8) prohibits a debtor from filing repeated cases under Chapter 7 within eight (8) years of one another.

An example would be if a debtor filed for bankruptcy on April 1, 2006, the next time they can seek Chapter 7 protection is after April 1, 2014.

If 8 Years Has Not Elapsed, What Can I Do?
Other options exist than Chapter 7.  One option is to choose Chapter 13 instead of Chapter 7. Chapter 13 can be filed within 24 months, which is 2 years, of a prior bankruptcy discharge. Since the creditors tend to be paid more in Chapter 13 bankruptcies, it is better for creditors to see a Chapter 13. Chapter 13 is often referred to as a “debt repayment bankruptcy.” The debtor allows his income over a period 36 to 60 months to be used to repay the debts.

A second option is to wait for the eighth anniversary date to file for Chapter 7. If your anniversary date for the last filing is fast approaching, we would generally encourage you to seriously consider this option. It is important to remember that garnishments and asset seizures cannot be stopped without a bankruptcy filing. Still you have some protections.

If you cannot make a decision based on this limited overview, please feel free to meet with me to to get more precise advice for your needs.