You must wait eight years between filing Chapter 7 bankruptcies. This prohibition limiting filing can cause many complications for individuals facing debt multiple times in their lives.
No one wants to file Chapter 7 bankruptcy multiple times. However, circumstances of life will sometimes dictate the need to do so. Unfortunately, the prohibition against filing in less than eight years is ironclad. If you are unable to file because you have already filed within the last eight years, there are several strategies that you can pursue.
First, you will normally be able to file a Chapter 13 bankruptcy in less than eight years. This would require you to repay at least a nominal amount of debt to your creditors. In some cases, Chapter 13 bankruptcy may be the only bankruptcy that you qualify for even when the eight years expires. If your income has gone up, or you have acquired equity in a home or other property, Chapter 13 bankruptcy may be the only option. There may be no reason to wait.
A second option may be to reach out to your individual creditors and negotiate individual payments in lieu of bankruptcy. After the fact, if you cannot maintain these payments, you may be able to file a Chapter 7 bankruptcy at a later date. The payments to creditors may be able to buy you time until you can file at the later date.
A third option you may need to discuss with your bankruptcy attorney is whether or not to just simply ignore your creditors until you qualify again. Creditors have a wide range of actions they can take against you, including suing you and putting liens on your property. In some circumstances this may be a manageable problem. Creditors have a wide range of actions they can take against you, including suing you and putting liens on your property. In some circumstances this may be a manageable problem with the guidance of an experienced attorney. Reaching out to an experienced bankruptcy attorney may help you navigate this waiting period.
Call us at 412-414-9366 to discuss your situation and see if bankruptcy is an option, or will be an option down the line. I will be happy to discuss your situation and answer your questions.