Excessive debts sometimes force people in Kentucky to seek bankruptcy protection multiple times. Bankruptcy law does not limit how many bankruptcies people can file, but waiting periods realistically limit how often people can do it. For someone who has already gone through a Chapter 7 bankruptcy, eight years from the date of the previous filing must pass before petitioning for Chapter 7 protection again.
A person may file a new Chapter 13 bankruptcy case right after the closure or discharge of a previous Chapter 13 bankruptcy. Sometimes people who have already begun the proceedings to file a Chapter 7 bankruptcy need to pursue a Chapter 13 filing. In that case, they must wait a minimum of four years from the original Chapter 7 filing date. A longer wait of six years is necessary for people who first filed for Chapter 13 bankruptcy and now want to file under Chapter 7. A Chapter 13 payment plan that is 70 to 100 percent paid off, however, could enable a person to request Chapter 7 protection before six years have passed. Courts have the ability to bar people from filing again if they had a previous bankruptcy case dismissed.
Debtors currently involved in a Chapter 13 payment plan who cannot keep up with payments could qualify for a bankruptcy conversion to Chapter 7. This could be accomplished by filing a notice of conversion and passing a means test to qualify for a discharge of debts.
A person thinking about filing for Chapter 7 bankruptcy could gain specific answers from an attorney about which assets might be exempt and which ones might require liquidation. Legal support could enable an individual to prepare accurate financial disclosures for the court. A lawyer could also manage any issues that arise while the court reviews the case.