How Long Do You Have to Wait Between Filing Bankruptcy in Pennsylvania?
Over the years, bankruptcy has helped millions of people save themselves from financial trouble. Despite the skepticism shown by some, bankruptcy has provided the necessary tools to fight off excess debt. People who have obtained a bankruptcy discharge may be inclined to file for another chapter. Many times, this is due to unforeseen financial issues. You may ask whether you can file for multiple bankruptcies or not. As you will see throughout this article, you can file for bankruptcy at any moment. However, timing is the critical factor when deciding to file for another bankruptcy, especially if you are switching from one chapter to another. Our Pennsylvania bankruptcy lawyers from Young Marr & Associates invite you to keep reading as we discuss how much time you have to wait in filing bankruptcy.
How Long Should I Wait Between Bankruptcy Filings in PA?
Bankruptcy is an excellent way to manage excess debt, especially for those struggling financially due to things such as credit card debt. Throughout the years, millions of people have witnessed the benefits of bankruptcy and have also experienced a new financial beginning. Unfortunately, not everybody has the fortune of getting out of debt successfully. For these people, bankruptcy may still be an option. While nothing in bankruptcy law prevents you from filing again, timing your filing may be the best option for you. There is a reason behind waiting for re-filing for bankruptcy. If you file bankruptcy soon after a first discharge, you may not be able to obtain a second one right off the bat.
Timing is essential when filing bankruptcy again. For instance, eight years must have passed from the moment you filed your first Chapter 7 bankruptcy. Generally, your Chapter 7 discharge will remain in your credit history for ten years. The good news is you may file a second Chapter 7 two years before your discharge disappears. This means you will not have to wait ten full years to file another Chapter 7.
On the other hand, Chapter 13 bankruptcy does not require an extended waiting time before filing for a second one. Petitioners who have filed for Chapter 13 before, have to wait two years before being able to file for an additional one. These time frames seem straightforward. However, timing can change if you decide to switch from one bankruptcy chapter to another.
For example, if you obtained a discharge under Chapter 7, but are now trying to file for a Chapter 13, you will need to wait for a period of four years from the original Chapter 7 filing. However, if you got a discharge under Chapter 13, and are now attempting to file for Chapter 7, the waiting period would be six years from the original Chapter 13 filing unless you have paid all of your unsecured debt following the principle of good faith. It is important to remember that you can file for bankruptcy even without a discharge. There may be instances where you can identify an old debt that gets in the way of obtaining a bankruptcy discharge, such as overdue taxes.
Why Should I File for Bankruptcy in Pennsylvania?
Despite saving millions of people from financial catastrophe over the years, bankruptcy is a concept not everybody understands. It is understandable to feel apprehensive about the whole process as it can get incredibly complex and overwhelming. This is especially true for first-time petitioners. Unfortunately, many people only focus on the stress bankruptcy may bring into their lives. For this and other reasons – such as social stigma – many people may reject the possibility of filing bankruptcy.
The truth is bankruptcy can be more beneficial than many may think. For instance, bankruptcy’s primary purpose is assisting debtors in getting rid of excess debt. Filing bankruptcy can put you on the right track towards financial recovery. People generally file a Chapter 7 or Chapter 13 bankruptcy – the most common types of consumer bankruptcies. Chapter 7 or liquidation bankruptcy is one of the most common types of bankruptcy people file for. This is mostly due to its efficacy in fighting off unsecured debt. Unsecured debt refers to a debt not guaranteed by collateral. Medical bills, credit card debt, and rent payments are common examples of unsecured debt. Obtaining a discharge means you may be able to get rid of most or all of your unsecured debt.
On the other hand, Chapter 13 – another common type of bankruptcy – allows debtors to get rid of excess debt by designing a three to a five-year repayment plan. Once your creditors and the court have approved your repayment plan, you will start paying your debt. A trustee will divide your payments equally among your creditors for the duration of your plan. Once you complete your Chapter 13 process, you may obtain a discharge. However, it would be best if you remembered to comply with all the rules and regulations laid out in your plan. Any delays or missed payments can hurt your bankruptcy case.
In addition to discharging your debt, bankruptcy can also provide you with a valuable benefit. As soon as you file for bankruptcy, you obtain the protections provided by the “automatic stay.” The automatic stay works as an injunction against collecting actions. In other words, your creditors cannot knock at your door looking for payment while your bankruptcy process is underway. Furthermore, the automatic stay can also protect your home and car from mortgage foreclosure and repossession, respectively. This can give you the opportunity to keep your home and your car during bankruptcy and save them from being taken away by your creditors.
Bankruptcy Attorneys Offering Free Consultations in PA
If you or someone you know is going through financial hardships and is considering filing for bankruptcy, we can help. Backed by years of experience handling bankruptcy law cases, our Pennsylvania bankruptcy attorneys can assist you through the entire process. At Young Marr & Associates, we understand the difficulties associated with financial hardship. That is why we strive to provide you with dedicated, skilled, and quality legal representation to all of our clients. Do not let a bad financial situation take over your entire life. Let our experienced attorneys assist you during this trying time. To schedule a free, confidential consultation, call our law offices today at (866) 781-4058.
☑ Been paying credit card balances that seem to never go down?
☑ Lost your job and are now having trouble keeping up?
☑ Attempted to work out a payment arrangement to no avail?
☑ Been notified of a mortgage foreclosure action?
☑ Been denied for a mortgage or other line of credit?
If the answer to any of these questions is “yes” then bankruptcy may be an option that you should consider.