One of the changes to the Bankruptcy Code in the 2005 Act was the time limitation on filing a Chapter 7. You can only obtain a discharge from a Chapter 7 every eight years, so for instance, if you filed in 2008, you will have to wait three more years. However, this does not mean you are without any bankruptcy options.
While you cannot file a Chapter 7, you could file a Chapter 13. If you have a home, this may be necessary, a Chapter 13 is an easier option for saving a home, assuming you have some level of steady income. If you previously filed a Chapter 7 and are considering filing a second time, a Chapter 13 may prove useful in a providing a structure to your spending that can help prevent the need to file a bankruptcy a third time.
The centerpiece of a Chapter 13 is the debtor’s repayment plan. The Chapter 13 plan is essentially a budget. It includes all of your necessary expenses and how much money you have left over after those are paid. This remaining amount is devoted to secured and unsecured debts.
Because the plan lasts three to five years, if you can follow it, it can provide you with the experience you may need to develop good habits handling money. In addition to eliminating most of your unsecured debts, a Chapter 13 can help you avoid the cycle of overspending on credit cards and other types of unsecured debts.
If you need to file another bankruptcy in less than eight years from your last filing, contact and bankruptcy attorney and they can explain how a Chapter 13 can help.
Source: Fox Business, “Too Soon to File for Bankruptcy Again?” Justin Harlik, August 14, 2013