Most individuals who have filed for bankruptcy before, whether Chapter 7 or Chapter 13, do not want to go through the bankruptcy process again.  After all, the purpose of bankruptcy is to discharge debt that has been haunting you for years.  However, things come up in life that may result in a recurrence of debt, and no matter what the reason may be to repeat the bankruptcy process, you should be aware of what limitations may be placed on how and when you can re-file for bankruptcy.  Debt often plagues individuals through no fault of their own, and bankruptcy may be the only way to free themselves of this debt.  As such, you should consider how a Kansas City Bankruptcy Attorney can help you understand what your options are.

Your Second or Subsequent Bankruptcy

United States bankruptcy law does not technically place limitations on how many times you can file for bankruptcy, and when you can file for bankruptcy.  However, there are certain time limitations that may impact the success of your subsequent bankruptcy.  Re-filing for bankruptcy too soon after debt has been discharged following your previous bankruptcy will prevent you from receiving a second discharge of your debt, as explained below.

If you previously filed for Chapter 7 bankruptcy, and your debt from that bankruptcy has been discharged, you cannot discharge your debt in a future Chapter 7 bankruptcy within eight years of the date of filing of the previous Chapter 7 bankruptcy.  However, if you wish to file Chapter 13 bankruptcy after you have discharged debt from a Chapter 7 bankruptcy, you do not have to wait as long.  You may discharge debt from a subsequent Chapter 13 bankruptcy four or more years following the date of filing of your Chapter 7 bankruptcy.  While four years is still a rather long period of time, it is much shorter than the eight year requirement for pursuing a subsequent Chapter 7 bankruptcy.

If you previously filed for Chapter 13 bankruptcy, and wish to file for Chapter 13 bankruptcy again, you cannot discharge debt from a subsequent bankruptcy within two years of the date of filing of the previous Chapter 13 bankruptcy.  If you wish to file for Chapter 7 bankruptcy after a previous Chapter 13 bankruptcy, you cannot receive a discharge of your debt within six years of the date of filing of your previous Chapter 13 bankruptcy. 

However, you may be able to discharge debt within six years if at least one of two exceptions apply to your situation.  If you were able to pay all of your unsecured creditors in full in your previous Chapter 13 bankruptcy, and/or if you were able to pay at least 70% of the claims in your previous Chapter 13 bankruptcy, and your bankruptcy plan was proposed in good faith, then you may be able to discharge debt from a subsequent Chapter 7 bankruptcy within six years of the date of filing of your previous Chapter 13 bankruptcy.

Given that bankruptcy matters can be very complicated and can have a significant impact on your financial health, it is wise to work alongside a qualified Kansas City Bankruptcy Attorney to ensure you are taking the right steps to feasibly discharge the debt you are facing.

Contact Kansas City Bankruptcy Attorney Douglas Breyfogle to Schedule a Free Consultation

Taking the step to consider bankruptcy is a very important decision that may help you reach your goals of becoming debt free.  While multiple bankruptcy filings is certainly possible over a period of time, it is always best to speak with an attorney so that you are aware of all possible options for eliminating debt.  If you believe bankruptcy may be right for you, or if you would like to discuss other debt-elimination options, you should speak with a skilled Kansas City Bankruptcy Attorney right away.  With more than twenty years of experience, Kansas City Bankruptcy Attorney Douglas Breyfogle understands just how important it is for each of his clients to eliminate their debt in the most practical way possible.  If you would like to discuss your financial situation with Douglas Breyfogle, contact our office today by calling (913) 742-8700 to schedule your free consultation.  Mr. Breyfogle will promptly provide you with the legal representation that you deserve.