
If you’ve previously filed for bankruptcy, you understand that despite the complexities of this process, it is critical to help alleviate the stress and anxiety debt can cause. However, if you’re looking to file again, knowing whether or not there is a waiting period or maximum amount of time between filings is critical. Additionally, if you’re filing for the first time, it can be useful to know how long you must wait between filings to best prepare for the future. The following blog explores what you should know about these matters and why you should work with a Memphis, TN consumer bankruptcy lawyer who can help you avoid the most common errors.
What Are The Different Bankruptcy Chapters?
For consumers, there are typically two kinds of bankruptcy you may be able to file. The first is Chapter 7, which involves the liquidation of assets to repay credits. This process typically lasts only six months, making it ideal for many. However, only those who pass a means test are eligible to apply. This essentially means you earn less than the median income of Tennessee. After assets are liquidated, your remaining eligible debt will be discharged.
Those who do not pass the means test can file for Chapter 13. Essentially, this reorganizes your debt into a repayment plan that will last three to five years. This is ideal for many, as you can retain all your assets while still paying debt. However, it is a longer process than Chapter 7.
How Frequently Can You File Bankruptcy?
It’s important to understand that there is no limit to how many times someone can file for bankruptcy. However, there are time limitations you must adhere to in between filings if you wish to have eligible debt discharged. How long you must wait depends on what chapter you filed previously and which you intend to file now. The time period will begin on the date you officially file for bankruptcy.
Generally, the time limits are as follows:
- Chapter 7 to Chapter 7: Eight years
- Chapter 7 to Chapter 13: Four years
- Chapter 13 to Chapter 13: Six years
- Chapter 13 to Chapter 7: Two Years
Again, you can file for bankruptcy as many times as you wish. However, there are very few circumstances in which filing for bankruptcy without receiving debt discharge is in your best interest. If you are interested in filing again, it’s in your best interest to connect with an attorney, especially if you would not receive any debt discharges. They can help advise you on the best course of action based on your circumstances.
At the Arnold Law Firm, we understand how frustrating debt can be. That is why the team at the Arnold Law Firm is here to help. We understand how complicated these matters can be, which is why we are ready to assist you. Connect with us today to learn how we can help you explore your legal options if you are interested in filing for bankruptcy,