Kindlund Legal LLC.

Call Now For A Complimentary Case Evaluation:

(240) 539-9393

Former Chapter 7 Trustee

Kindlund Legal LLC.

Filing For Bankruptcy A Second Time

  • By: Kindlund Legal LLC
  • Published: July 14, 2020

While bankruptcy is a legal process, it is also a method to alter a person’s life for the better when it comes to addressing financial qualms. It is easy to want debt relief, but it is difficult for you to process the methods available to do this. The word bankruptcy scares you, as it signifies major changes. The stress of your financial problems makes it challenging to fully digest what will happen if you file and what filing options you have.

But what if this isn’t your first time filing for bankruptcy? This can certainly cause you to seriously think about your options and if bankruptcy is one of them.

It is important to know that bankruptcy is not the end of your financial wellbeing but rather the beginning of a fresh financial start. This is true even for those with a bankruptcy already on their credit history.

In the past, you dealt with overwhelming debt. Maybe it was related to unemployment, racking up credit card debt or ever increasing medical bills related to a health condition or injury. No mater the cause of your financial problems, you were able to seek debt relief through a Chapter 7 bankruptcy. Despite this process discharging the debt that was plaguing you, you are currently faced with financial issues. This causes you to question whether bankruptcy could provide relief a second time around.

The ability to file for bankruptcy again depends on the type of bankruptcy filed. For instance, if you seek to file another Chapter 7 bankruptcy, you will need to wait eight years from your last filing. However, if you seek to file for a Chapter 13 bankruptcy, the wait time is four years from your last filing.

Because timing is the issue when it comes to filing for bankruptcy a second time around, it is likely that one will move forward with a Chapter 13 bankruptcy if one is eligible. This type of bankruptcy does not discharge your debts like your previous filing did, but rather, it creates a payment plan that involves you paying none, some or all of your debts over the course of a five year repayment plan. A major benefit of this type of bankruptcy is the ability for the filer to keep their home, personal vehicle and other assets exempt from the process.

Filing for bankruptcy for a second time is a challenging decisions to make; therefore, it is important that you are fully aware of you options and how a second filing could impact your financial future. Being well informed of the process could help you overcome your financial problems and obtain debt relief.

Jillian Kindlund

Call Now For A Complimentary Case Evaluation
(240) 539-9393
Former Chapter 7 Trustee