How often can I file for bankruptcy in Michigan?
Even if you have received a Chapter 7 or Chapter 13 discharge in the past, you may be able to file bankruptcy again. However, there are certain requirements that must be met in order to receive a discharge. An experienced Detroit bankruptcy attorney can evaluate your situation to verify if you are qualified.
Prior Chapter 7 Bankruptcy
If you have filed Chapter 7 bankruptcy in the past – and received a discharge of your debts – you are required to wait 8 years from the filing date in order to file a Chapter 7 bankruptcy again. An individual can file a Chapter 13 bankruptcy anytime after exiting a Chapter 7. However, you are required to wait 4 years after the prior Chapter 7 filing in order to receive a discharge under Chapter 13. Filing a Chapter 13 bankruptcy may benefit an individual even if they are not eligible for a discharge. For example, you may be able to pay your obligations in a more affordable payment plan, stop foreclosures and catch up on past due mortgage payments. If you have filed Chapter 7 bankruptcy before and are considering filling again, a qualified Michigan bankruptcy attorney can help guide you through the process.
Prior Chapter 13 Bankruptcy
If your first discharge was under Chapter 13 and you now wish to file a Chapter 7, the waiting period is six years unless the prior Chapter 13 either paid 100% of unsecured claims or paid 70% of unsecured claims and was in good faith and your best effort. If you have filed a Chapter 13 Bankruptcy and received a discharge, you are required to wait two years to file another Chapter 13.
Filing again even though you can’t receive a discharge
After receiving a chapter 7 discharge, you might still be able to benefit from filing a Chapter 13 petition immediately even though you can’t receive a second discharge (bankruptcy attorneys love to call this a “Chapter 20 bankruptcy”). The benefits would depend on your personal situation and the laws in your state. Essentially you’d be looking to make payments with the protection of the bankruptcy court through a Chapter 13 plan.
Filing for bankruptcy a second time can be more complex than the first time around. You can expect bankruptcy creditors and trustees to conduct a more thorough review of your finances before allowing a discharge. At Detroit Lawyers, our experienced bankruptcy professionals will discuss with you whether you are eligible for a second filing
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