How Many Years Do You Have To Wait To File Chapter 7 Again ?
An amended law enacted in the year 2005 place certain strict limits on the debtors applying for bankruptcy. Debtors who have already filed a bankruptcy petition need to wait for another 8 years for filing bankruptcy once again. The waiting period can be different depending upon the fact whether Chapter 7 was filed before or Chapter 13. |
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Debtors can file Chapter 7 bankruptcy only once every 8 years that starts the day preceding Chapter 7 had been filed with the courts. In case the debtors have filed Chapter
13 bankruptcy then they may file Chapter 7 bankruptcy only after another 6 years time. The law enacted in the year 2005 is basically designed for making filing of Chapter 7 a bit difficult. Now the debtors, who would like to file this bankruptcy, need to pass a test known as the ‘means test’ which is meant for meeting the residency requirements as well as undertake debt counseling.
The ‘means test’ normally assesses debtors’ income in order to determine if they can pay off their creditors in coming time. It also compares their income with median income within their state and then determines if they have enough cash flow to repay their creditors in another 5 years.
After the approval of Chapter 7 bankruptcy, certain debts get cleared up or discharged which means the debtor does not need to repay that amount. These may include loans on the unsecured property, medical bills, credit card bills, or other similar debts. Chapter 13 bankruptcy can be filed after 4 years in case one has already files Chapter 7 bankruptcy.
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Bankruptcy laws are meant for helping the people deeply under debts for reducing or rather eliminating their indebtedness. But the decision regarding the filing of bankruptcy can be very difficult in some cases but then it seems to be the only solution when nothing else appears helping at hard times. There are various kinds of bankruptcies and choosing the most suitable as per circumstances as well as personal capacity is something that is very important and can make the whole difference.