What to Do if you Already Filed a Chapter 7 Case and Need Help Again.

BANKRUPTCY AFTER BANKRUPTCY

You are able to receive a Chapter 7 discharge once every 8 years. This time period is calculated from date of filing the first case to the date the second case is filed.  Unfortunately life does not always follow this schedule. Sickness, job loss, accidents unexpected events can mean having mounting debt problems even after bankruptcy.  The solution could be a Chapter 13 bankruptcy.  Chapter 13 allows you to get a discharge within 4 years of a Chapter 7 case shortening the time by 4 years. While the Chapter 13 is a payment plan in many instances the income situation is similar to what it was when the original Chapter 7 case was filed meaning there is little if any money left over after the client pays his normal living expenses.

In that situation a Chapter 13 case could be approved with a minimal monthly payment based on relative low disposable income. The way the minimal payment Chapter 13 would work is to pay creditors a small token payment every month for 36 months based on the few dollars the client has left after he pays his living expenses. At the end of the 36 month payment plan the remaining balance of the debt is discharged just like it was in the previous chapter 7 case.

GET HELP FROM EXPERIENCED BANKRUPTCY LAWYER WHEN YOU NEED TO FILE BANKRUPTCY AGAIN

If the unexpected life problem happens before the 4 year anniversary of the filing of the Chapter 7 case the Chapter 13 still can be used to stop collection by the creditors it just will not allow the debt that remains unpaid to be discharged. An experienced bankruptcy lawyer can help you with your debt problems even if you have already filed a prior bankruptcy. These actions require careful planning and understanding of the limitations you have which the bankruptcy lawyer at Broumas Law Group LLC can help you with.

Another place where a Chapter 13 which is filed after a Chapter 7 case can provide some relief is in the situation where the client files the Chapter 7 case discharges the debt and then after that becomes delinquent on her mortgage. This is often referred to as a Chapter 20. While “Chapter 20” does not exist officially under proper circumstances, where there is no bad faith, a Chapter 13 filed after a Chapter 7 (the Chapter 20) can allow you to save your home by catching up the arrears on the mortgage over 5 years even after you filed a previous Chapter 7 case. This is definitely where you want to have an experienced bankruptcy lawyer to help evaluate whether this sort of relief is available to you.