By and large, if you have filed for bankruptcy before, you need to be a little careful in considering whether or not to file again. As with every other part of life, timing is everything in bankruptcy. This is one of the least complicated considerations in bankruptcy planning, but, nevertheless, many do find it confusing.
I have written about Chapter 13 eligibility, including the timing with regard to prior bankruptcy filings here. To recap, though, if you have never filed bankruptcy before, there is no problem, but, if you have filed for and received a Chapter 7 bankruptcy discharge within 4 years before you would file the new Chapter 13 petition, you are not eligible. Likewise, if you have filed for and received a Chapter 13 discharge within 2 years of the date you would file the new Chapter 13 petition, you are not eligible.
With regard to Chapter 7 filings, you are not eligible to file a petition if, during the 180 days (i.e., 6 months) prior to the planned filing, you have had either a Chapter 7 or Chapter 13 bankruptcy petition dismissed due to your wilfull failure to appear before the court or comply with the court’s orders or if you voluntarily dismissed the previous case after a creditor sought relief from the court to recover property burdened by liens held by that creditor. A Chapter 13 petition voluntarily dismissed because, for example, your circumstances worsened and you could not make the required plan payments should not, on the other hand, make you ineligible to file a subsequent Chapter 7 petition, even within 180 days. If you have received a Chapter 7 discharge within the past 8 years, you are also not eligible to file again until that 8 year-mark has passed.
If you have any questions about your eligibility to file either Chapter 7 or Chapter 13 bankruptcy, please contact me at jhilla@aronofflinnell.com or (248) 977-4182 to schedule a free, initial consultation, and I can help you determine whether bankruptcy is a useful and workable solution for you.
