How Soon Can You File a Second Chapter 7?

Bankruptcy Attorney Dayton, Oh

A Chapter 7 bankruptcy filing can be a great option for restarting your financial life and turning over a new leaf. Many types of debt can be discharged completely through a Chapter 7 filing, and in many cases you will be able to keep your most important assets such as your home and your car. Faced with overwhelming credit card or medical debt, many people turn to a bankruptcy lawyer for advice, and for many a Chapter 7 filing is the best option. Unfortunately, should you make financial mistakes or face new medical debt after your filing, your options can be more limited.

Eight Year Wait

After completing a Chapter 7 filing, you cannot file again until eight years have elapsed, according to a bankruptcy lawyer. If you need to liquidate your assets again before the eight years have passed, you will have a difficult time of it. One consideration, says the bankruptcy lawyer, would be to file a Chapter 13 bankruptcy. Since a Chapter 13 is a different kind of bankruptcy filing, it is not included in the eight year waiting period.

So, for example, if you are facing foreclosure on your home, and a mountain of new medical debt, and it has been seven years since your last Chapter 7 filing, a possible course of action would be to file Chapter 13, which triggers the automatic stay and would stop the foreclosure proceeding on your home. After a year had passed, you would be eligible to file for liquidation again and could discharge these new debts.

A Cincinnati bankruptcy lawyer will always have the best advice for how to proceed in your particular financial situation.

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