CAN I FILE A NEW BANKRUTCY? CHAPTER 7 OR CHAPTER 13?
This is a general outline provided by ROBERT J. ADAMS & ASSOCIATES. Offices in Chicago and Waukegan, Illinois
The primary practice of ROBERT J. ADAMS & ASSOICATES is Chapter 7 and Chapter 13 Bankruptcy.
This article is only about timing: not whether you can otherwise or should file a bankruptcy.
DID YOU FILE ANY BANKRUPTCY IN PAST?
- Never filed a bankruptcy before. Then you may file Chapter 7 or Chapter 13;
- I (or) we filed a Bankruptcy case in the past. Then we have to look to see if you are edible to
- File a Chapter 7 now; or
- File a Chapter 13 and receive a discharge upon completion.
NOTE: The operative date on the prior case is
- The date of the filing of the prior case;
- NOT the date of discharge.
- The rules that follow is when you filed a prior case and received a discharge; and
- These rules do not apply if a prior case was dismissed or closed without a discharge.
THE RULES ARE 2, 4, 6, AND 8 YEARS.
- 2 years from a previous Chapter 13 to a new Chapter 13
- 4 years from a previous Chapter 7 to a new Chapter 13
- 6 years from a previous Chapter 13 to a new Chapter 7
- 8 years from a previous Chapter 7 to a new Chapter 7
FILED A PRIOR CHAPTER 7
Is it more than Eight (8) years from today? If “Yes” you can file Chapter 7; if “No” you can’t
Is more than Four (4) years from today? If “Yes” you can file Chapter 13 and receive a discharge. If “No” you can file Chapter 13 but will not receive a discharge.
FILED A PRIOR CHAPTER 13
If more than Six (6) years since the prior Chapter 13 you can file Chapter 7.
If more than Two (2) years you can go from one Chapter 13 to another Chapter. (This is very rare)
OTHER CONSIDERATIONS
If the prior Chapter 13 paid all creditors 100% (or at least 70% and was your best efforts) you do not have to wait Six (6) years to file Chapter 7.
If the prior Chapter 13 was converted to Chapter 7: the case is treated as a Chapter 7 case and the rules applying to Chapter 7 apply.
WHY FILE CHAPTER 13 WHEN YOU CAN’T RECIVE A DISCHARGE?
Things happen after the Chapter 7. For example:
- Your car is about to be repossessed;
- Your car has been repossessed and you want it back;
- You are behind on your mortgage;
- There is Wage Garnishment; or
- Your license is being suspended for parking tickets.
- There are, of course, other reasons.
As you can see the rules about filing a new case can be tricky. Experienced lawyers understand r the rules of timing. As practice Robert J. Adams & Associates has access to a website. We input one’s social security number. Then we immediately see any history of Bankruptcy. With the information we can tell you about your Bankruptcy options.