Regardless of how much money you make or how many pennies you save, anyone can encounter difficult times that result in overwhelming debt. You simply never know when you might suffer from a medical illness or even lose your job. In these situations, filing for bankruptcy can give people a clean slate and help them get back on their feet. But what if your fresh start becomes overcast by mounting debt again? Fortunately, you still have options. Here is what you need to know about filing for bankruptcy more than once.
How often can you file for bankruptcy?
The rules regarding filing for bankruptcy more than once differ depending on which type of bankruptcy you are planning to file and what type you have filed for in the past. If you want to file for Chapter 7 bankruptcy, it has to have been at least eight years since you received your discharge for a previous Chapter 7 case, or six years since receiving your discharge from a previous Chapter 12 or Chapter 13 case. If you are currently planning to file for Chapter 13 bankruptcy, it has to have been at least two years since receiving a discharge under a prior Chapter 13 case, or four years since a discharge from a Chapter 7, Chapter 11 or Chapter 12 case. If you did not receive a discharge from your last bankruptcy case, these rules might not apply.
What if you have filed for bankruptcy more than once in a year?
If you file for bankruptcy twice in one year, your automatic stay may be reduced to thirty days. An automatic stay is the bubble of protection that you are granted when you file for bankruptcy. It prevents creditors from collecting on debt or contacting you while your bankruptcy case is in process. For a first bankruptcy, your automatic stay protection will usually last your entire case until your discharge is entered. However, if you file for bankruptcy twice or more in one year, you may not be granted an automatic stay at all.
To learn how your past bankruptcy case may affect your current or future plans to file for bankruptcy, contact a bankruptcy lawyer in Boynton Beach. The experienced and dedicated lawyers at Kelley & Fulton will help you take the necessary steps to overcome financial difficulties and get relief.