Bankruptcy is a legal remedy to restructure or eliminate debt loads that individuals can no longer repay. Often bankruptcy is the result of unexpected financial setbacks such as medical bills or loss of employment. In some instances, bankruptcy protection may be needed a second time by an individual who has already sought bankruptcy protection in the past. 

The type of bankruptcy protection that you originally sought will determine when the option of bankruptcy could become available to you again. 

What Options Do You Have When You’re Filing for Bankruptcy?

Individuals have two options when they’re considering filing for bankruptcy protection. Chapter 7 bankruptcy is designed to liquidate assets and use the proceeds to pay outstanding debts. Chapter 13 bankruptcy is designed to restructure unsecured debt and create a court-approved 3 to 5-year payment plan to cover a portion of the debt. 

At the end of both bankruptcy process, the courts often discharge any remaining debt, which means the individual then gets a clean slate and is no longer required to make further debt payments.

How Long Do You Wait In-Between Bankruptcy Filings?

For individuals who have already successfully filed for Chapter 7 bankruptcy, there’s an eight-year wait before they can once again file for Chapter 7 protection. Those eight years get calculated from the date the original Chapter 7 was filed. For individuals who have previously applied for Chapter 7 bankruptcy but were unsuccessful, there is no waiting period. 

Those who successfully filed for Chapter 7 bankruptcy and would like to file for Chapter 13 bankruptcy at a later date will need to wait four years from the date of the original Chapter 7 filing.

If Chapter 13 bankruptcy protection was sought and granted, there’s a two year waiting period before an individual can file for Chapter 13 protection a second time. If the original bankruptcy filing was Chapter 13 and an individual is now considering filing for Chapter 7 bankruptcy, there is a waiting period of six years. 

Can I File Again For Bankruptcy If I Still Owe the Original Debt?

In situations where an individual has already paid 70% or more of their restructured debt under their Chapter 13 debt payment arrangement, they can file for Chapter 7 bankruptcy protection before the six-year waiting period has expired.

Generally, you can file for bankruptcy twice or even three times, even if you’ve already received a discharge. The key is you’re going to have to wait a certain period after you’ve filed and have received a discharge to file for bankruptcy again and get a full discharge.

Individuals considering filing for bankruptcy a second or third time should arrange a consultation with a top law firm specializing in bankruptcy, one that can help you retake control of your life by regaining control of your debts.

Trusted Northeastern Louisiana Bankruptcy Lawyers

There’s no better time than now to decide if a second or third bankruptcy filing is the best option for you and your family. To get help making that decision, call the trusted and knowledgeable attorneys at E. Orum Young Law Offices. They understand the intricacies of filing for bankruptcy and can help ensure you’re on the best track to financial freedom. 

If bankruptcy is not the best option, then the E. Orum Young bankruptcy lawyers can also help find a different way out of the deficit. They can negotiate with creditors on your behalf and perhaps get them to lower the payments. They can also help consolidate your affected accounts so there’s only one monthly payment to be made.

E. Orum Young Law has more than 35 years helping the people of Northeastern Louisiana file for bankruptcy and regain control of their finances. In those 35 years, we have filed more than 20,000 cases and experienced unbelievable success. We help our clients understand the aspects of their case and handle any necessary filings. Speak with us today at (318) 450-3192 to schedule your free case review and start protecting your family’s future.