Los Angeles Bankruptcy Attorney

Wipe Out Debts through Chapter 7 Bankruptcy

 What is a Chapter 7?

Chapter 7 bankruptcy, also called liquidation, is the most common type of bankruptcy and completely eliminates your dischargeable debt forever. Individuals or businesses who are granted Chapter 7 bankruptcy discharge have proven to the Bankruptcy Court that they have no realistic way to repay their debt over the course of the next three to five years. 

 When Chapter 7  bankruptcy relief is awarded, the debtor is legally excused from having to repay any unsecured debts, and most debtors are able to keep all properties. Typically it takes about four months after the case is filed in the Bankruptc y Court, for a Chapter 7 bankruptcy case to be discharged.
 
Certain types of debts cannot be eliminated through Chapter 7 bankruptcy including student loans, child support, alimony,  and most taxes.

 If you had a prior bankruptcy pending within the past year

The automatic stay is the provision of the bankruptcy code which stops or prevents creditors collection actions (including repossession, garnishment, foreclosure, etc.).  However, if you filed one previous case which was pending within the past year, the stay will end on the 30th day after the filing of the present case. 

The stay will not go into effect at all if you filed two or more previous bankruptcy cases which were pending within the past year. For the automatic stay to take effect longer where there was a single previous case, or at all where there was more than one previous case, you must file a motion with the court and demonstrate "that the filing of the later case is in good faith as to the creditors to be stayed." 

  Prior cases which were dismissed under  11 USC §707(b)for abuse of the code and failure to meet the means test are excluded in determining how long or whether the stay will take effect.  [11 USC §362(c)(3)and 11 USC §362(c)(4)]

Within six months prior to filing a bankruptcy individuals must complete and obtain a certificate of credit counseling.

Amended Interim Rule 1007, made effective October 1, 2006, amends the filing requirement of Rule1007(b)(3) and allows the certificate of completion to be filed within 15 days after filing a petition.

If you have filed for bankruptcy in the past, you may be wondering how soon you can file for bankruptcy again. Read on to learn about the time limitations for receiving a bankruptcy discharge after you have previously filed for, and received a discharge in, Chapter 7 or Chapter 13 bankruptcy.

Time Limits Apply to Discharges, Not to Filing

Technically, bankruptcy law does not set any minimum time that you to wait before you can file for bankruptcy again. However, there is a catch. If you file too soon after you have received a discharge of your debts in a prior case, you cannot receive another discharge. Since this generally makes the second bankruptcy filing a waste of time and money, it is important to know the time frames that apply to receiving a second discharge.

Timing your bankruptcy filing

Filing Under the Same Bankruptcy Chapter: Chapter 7 v. Chapter 13

If you are filing under the same bankruptcy chapter, the time frames are different depending on whether you are filing for successive Chapter 7 or Chapter 13 cases.

Successive Chapter 7 Cases

If you received your first discharge under a Chapter 7, you cannot receive a second discharge in any Chapter 7 case that is filed within eight years from the date that the first case was filed.

Successive Chapter 13 Cases

If you received your first discharge under Chapter 13, you cannot receive a second discharge in any Chapter 13 case that is filed within two years from the date that the first case was filed.

This can get tricky if you file your second Chapter 13 case between two and six years from the first Chapter 13 and the court refuses to confirm your Chapter 13 plan in the second case. Normally, if your plan is not confirmed you could convert to a Chapter 7 case. But in this situation, the rules for receiving a Chapter 7 discharge after a Chapter 13 discharge would kick in (see below) and prevent you from getting a discharge in the converted case.

Filing Under Different Chapters: The Order Matters

If the second bankruptcy case you want to file is under a chapter that is different from the chapter you received your first discharge under, the order determines the time frame.

Chapter 13, Then Chapter 7

If your first discharge was granted under Chapter 13, you cannot receive a discharge under any Chapter 7 case that is filed within six years from the date that the Chapter 13 was filed. The only exceptions to the six-year waiting period are:

• if you paid all unsecured creditors in full in the Chapter 13, or
• if you paid at least 70% of the claims in the Chapter 13 and the plan was proposed in good faith and was your best effort.

Chapter 7, Then Chapter 13

If your first discharge was granted under Chapter 7, you cannot receive a discharge under any Chapter 13 case that is filed within four years from the date that the Chapter 7 was filed.

This can get tricky if you file your second case (the Chapter 13) between four and eight years after the Chapter 7 case and the court does not confirm your Chapter 13 plan. Normally, if your Chapter 13 plan is not confirmed, you could convert the case to a Chapter 7 bankruptcy. However, in this situation, the rules for successive Chapter 7 discharges would kick in, preventing you from getting a discharge in the converted case. In this case, it might make sense to simply dismiss the Chapter 13 case.

When a Second Filing Might be Beneficial Even Without a Discharge

In some circumstances, you might still benefit from filing a Chapter 13 case immediately after getting a Chapter 7 discharge (this is commonly referred to as a Chapter 20 bankruptcy), even though you cannot get a Chapter 13 discharge. For example, perhaps you want the protection of the bankruptcy court while you pay a tax debt through a Chapter 13 plan. Whether you can get any benefit from a "Chapter 20" depends on your personal circumstances and the case law in your area. It would be wise to consult an experienced bankruptcy lawyer in your area for advice on this subject.

What If You Didn’t Receive a Discharge in the First Case?

If you didn’t receive a discharge in the first bankruptcy case, in most cases, you can file bankruptcy again without any limits on the second discharge.

If the First Case Was Dismissed

Unless the court orders otherwise, you can file again if your bankruptcy case was dismissed. A 180-day waiting period may apply if your case was dismissed for failure to obey a court order, failure to appear in the case, or you voluntarily dismissed the case after a creditor filed a motion for relief from the bankruptcy stay. There may, however, be different rules in effect with regard to the bankruptcy stay.

If Your Discharge Was Denied

If your discharge was denied in your first case, you may be able to file again, but you will probably not be entitled to a discharge of the debts from your first case. This is another special circumstance where you would be wise to seek the advice of an experienced bankruptcy lawyer.

Debt Relief Bankruptcy Attorney In Los Angeles

Los Angeles Bankruptcy Lawyer Jasmine Firooz will personally meet with you to review your financial situation and help you in deciding which option is most appropriate for your situation.

Para Ayuda con bancarota y eliminar sus deudas llame @ (213) 251-8568

consulta gratis con la abogada Jasmine Firooz

abogada de bancarrota con 20 anos de experiencia en leyes de bancarrota y miles de casos resueltos

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