Filing for bankruptcy and receiving a discharge can provide the fresh start you need. If you have filed for bankruptcy in the past, you may wonder if you are eligible for another discharge. A Philadelphia-area bankruptcy attorney will discuss your situation.
Bankruptcy and Debt Relief
You can file for Chapter 7. It requires the liquidation of assets to repay creditors, but over 90 percent of these cases are considered no-asset. Work with a bankruptcy attorney to ensure you can keep your property while discharging your debt.
Chapter 13 bankruptcy is for the reorganization of debts. A Chapter 13 filing will stop repossessions and foreclosures. The individual will participate in a court-directed repayment plan to catch up on missed payments and pay down their debt. Chapter 13 debt relief is not common.
After having your debt discharged once, filing for bankruptcy for a second time can be challenging. Bankruptcy is meant to provide a fresh start. Credit counseling and debt education are part of having a bankruptcy discharged, so ideally, an individual will not need a second bankruptcy filing.
Of course, life can be challenging, and things crop up that we have little control over. If you have already filed and had one bankruptcy discharged, you can still file again. There is a time frame required between these filings.
The clock starts running on the timing between filings from the date your previous case was filed, not discharged. If you have previously filed for Chapter 7 bankruptcy protection, you must wait eight years before filing again. If your previous bankruptcy filing was for Chapter 13, you could file for Chapter 7 protection after six years. There are some exceptions to this rule. If you have made significant strides in paying back debt from your Chapter 13 filing, you may qualify for Chapter 7 protection before the six years are up.
If you are interested in filing for Chapter 13 bankruptcy protection and have received a Chapter 7 discharge, you must wait four years before filing. If you previously filed for Chapter 13 bankruptcy protection, you can file for Chapter 13 protection again after two years.
Can My Discharge Be Revoked?
Once your bankruptcy is discharged, you are free to start fresh with your finances. There are a few situations where your discharge could be revoked. Steer clear these by working through your debt relief with an experienced bankruptcy attorney.
The most common reason why a discharge is revoked is when a creditor or trustee has proof that the discharge should not have been granted due to fraud.
What is Fraud in a Bankruptcy Filing?
Complete all of your bankruptcy paperwork truthfully to stay clear of fraud claims during bankruptcy. Working through this paperwork with a bankruptcy attorney ensures that your filing will be in good standing to have your debts discharged.
Bankruptcy fraud can result from fraud during filing, or it can be the result of fraudulent activities before filing.
Fraud Before Filing
Misrepresenting either your assets or income when applying for credit is considered fraud. Engaging in deceptive practices, such as overspending or taking out cash advances before filing bankruptcy, is also fraud.
Fraud During Bankruptcy
It is essential to be transparent when completing financial paperwork related to your bankruptcy filing. Leaving assets off of your filing, transferring or gifting items to others to keep them out of the reach of creditors, and otherwise hiding property are all fraud when filing for bankruptcy.
Working with a bankruptcy attorney ensures that your paperwork is for the bankruptcy filing. This is important because false documentation, withholding or destroying documents, or making false statements as part of the bankruptcy proceedings are all considered fraud.
Working With a Bankruptcy Attorney
Don’t let concerns over fraud prevent you from filing for much-needed bankruptcy relief. Working with an experienced bankruptcy attorney in the Philadelphia area ensures your case is adequately presented. One consideration of fraud is that the actions must be intentional. Mistakes are simply that — mistakes. As long as you are honest in your dealings with your attorney, you have no reason to worry about negative repercussions.
Changing Bankruptcy Filing Status
The majority of bankruptcies filed each year are Chapter 7. For some people, Chapter 13 filing makes more sense. Maneuvering debt relief with an experienced bankruptcy attorney will help you make the best decision for your financial situation.
If you need to file for bankruptcy a second time, it may make sense to change your filing status. If your finances are still strained, re-filing may not improve the situation. Also, filing with a different status may help you regain your financial footing sooner than anticipated.
An initial Chapter 13 filing requires a six-year wait before filing Chapter 7. However, if you have repaid the unsecured debt per your Chapter 13 agreement, you may not need to wait six years to file for Chapter 7 bankruptcy. If you have a recent Chapter 13 filing, speak with a bankruptcy attorney to discuss your options.
If you file Chapter 7 bankruptcy but have tax or other debts that were not discharged as part of that process, it is possible to build a repayment plan through Chapter 13 filing. Again, this is a situation for an experienced bankruptcy attorney.
It is also possible to file for Chapter 13 protection after filing Chapter 13 previously. This is helpful when you seek debt relief for taxes, student loans, or other expenses that cannot be discharged.
What Do Multiple Filings Do To My Credit?
Bankruptcy is not meant as a punishment but rather as an opportunity to reset and get a fresh start on your finances. With that being said, you can expect a negative impact on your credit score due to filing for bankruptcy.
The good news is that once you start fresh, you have the option of rebuilding your credit. Your credit will bounce back by stopping the accumulation of unpaid or late charges.
The best way to rebuild your credit following a bankruptcy filing is to take the information learned in the classes required as part of your filing and apply them to your situation. Your credit will rebound as you make on-time payments and time pass from your bankruptcy filing date.
Time is an essential factor in credit, so repeated bankruptcy filings will make building a solid credit score hard. The best way to rebuild your credit score following bankruptcy filings is to resolve financial issues without further filings or late payments.
That isn’t always possible, and don’t let concerns over your credit taking a hit prevent you from filing for bankruptcy a second time. While your credit will take an initial impact, you can begin the repair process immediately. If you are struggling with your finances, repeated late and missed payments will drag out the amount of time it takes to rebuild your credit.
Why You Need a Bankruptcy Attorney for Debt Relief
It is possible to file for bankruptcy protection on your own. The paperwork is available for you to complete, allowing you to save the money that would go towards an attorney. There are a few reasons why that is a bad idea.
Our experienced bankruptcy attorneys have been through this process many times. Whether or not you have filed for bankruptcy in the past, you do not have nearly the skills that we do with putting together the paperwork related to bankruptcy filings.
In addition to ensuring that all of the paperwork necessary for the bankruptcy filing is completed correctly and on time, hiring a bankruptcy attorney provides a layer of protection between you and your creditors.
Once your bankruptcy paperwork is filed, an automatic stay goes into effect. This prevents creditors from taking your property or hassling you while your case moves through the court.
When you are seeking debt relief, you are in a stressful situation. Having a professional handle the paperwork and help guide your decisions is a valuable resource. An experienced bankruptcy attorney can handle the paperwork and guide you through the often-confusing bankruptcy process.
Get in touch with us at Sadek Bankruptcy Law Offices, Call Us at 215-545-0008
Get in touch with us at Sadek Bankruptcy Law Offices if creditors are calling. Experienced Philadelphia bankruptcy attorneys will guide you through the process. Give us a call today.