Although no one sets out to end up in bankruptcy, it can happen to the best of us. Job loss, medical illness or other unforeseen circumstances can lead even the most financially savvy into trouble with debt. While bankruptcy is meant to be a tool for helping alleviate financial pressure, there are certain rules associated with the filing process that are intended to prevent abuses such as multiple filings.
Considerations
The average consumer holds the notion that you can only file for bankruptcy once. This is false and there are instances in which the court will allow a debtor to file on multiple occasions. However, the guidelines for filing again are strictly governed and may depend on the outcome of one's previous filing. For example, if a case was dismissed due to failure to pay fees or complete a certain step of the process, one may be eligible to file within 180 days.
Obtaining a debt discharge, on the other hand, changes the rules completely. If a debtor files for bankruptcy and completes the process successfully they must wait anywhere between 2 to 8 years before they can become eligible to file again. A debtor who is filing for Chapter 13 and had prior debts discharged in a Chapter 13 case must wait at least 2 years before filing again. Anyone filing for Chapter 13 after a previous Chapter 7 discharge is required to wait a minimum of 4 years before filing again. Filing for Chapter 7 after a prior Chapter 13 discharge must wait 6 years before being eligible to file. A debtor is required to wait 8 years to file a Chapter 7 after obtaining a prior Chapter 7 discharge.
Business Bankruptcy
Filing for bankruptcy in business is a bit different than in personal bankruptcy. Although the processes and case outcomes are similar, there are additional aspects to the financial matters of the company that must be considered. While the general rule holds that businesses cannot file for business Chapter 7 within 4 years of obtaining a prior Chapter 11 discharge, there are instances in which the court approves this case. In general, there is no specific time limit between Chapter 11 cases in a business bankruptcy. However, both of these rules come with exceptions.
It is up to the court to determine whether a business has a chance at successfully exiting Chapter 11 before allowing the case to proceed. With so many businesses filing Chapter 11 for the second or more time in recent months, much is being questioned as to the efficacy of this rule. What seems to be happening is that more businesses are entering Chapter 11 with the intent to reorganize debts, but instead converting their cases into business Chapter 7 liquidation cases.
Read More: http://www.articlesbase.com/bankruptcy-articles/filing-bankruptcy-multiple-times-5728194.html
Considerations
The average consumer holds the notion that you can only file for bankruptcy once. This is false and there are instances in which the court will allow a debtor to file on multiple occasions. However, the guidelines for filing again are strictly governed and may depend on the outcome of one's previous filing. For example, if a case was dismissed due to failure to pay fees or complete a certain step of the process, one may be eligible to file within 180 days.
Obtaining a debt discharge, on the other hand, changes the rules completely. If a debtor files for bankruptcy and completes the process successfully they must wait anywhere between 2 to 8 years before they can become eligible to file again. A debtor who is filing for Chapter 13 and had prior debts discharged in a Chapter 13 case must wait at least 2 years before filing again. Anyone filing for Chapter 13 after a previous Chapter 7 discharge is required to wait a minimum of 4 years before filing again. Filing for Chapter 7 after a prior Chapter 13 discharge must wait 6 years before being eligible to file. A debtor is required to wait 8 years to file a Chapter 7 after obtaining a prior Chapter 7 discharge.
Business Bankruptcy
Filing for bankruptcy in business is a bit different than in personal bankruptcy. Although the processes and case outcomes are similar, there are additional aspects to the financial matters of the company that must be considered. While the general rule holds that businesses cannot file for business Chapter 7 within 4 years of obtaining a prior Chapter 11 discharge, there are instances in which the court approves this case. In general, there is no specific time limit between Chapter 11 cases in a business bankruptcy. However, both of these rules come with exceptions.
It is up to the court to determine whether a business has a chance at successfully exiting Chapter 11 before allowing the case to proceed. With so many businesses filing Chapter 11 for the second or more time in recent months, much is being questioned as to the efficacy of this rule. What seems to be happening is that more businesses are entering Chapter 11 with the intent to reorganize debts, but instead converting their cases into business Chapter 7 liquidation cases.
Read More: http://www.articlesbase.com/bankruptcy-articles/filing-bankruptcy-multiple-times-5728194.html
1 comments:
That's great news for Business Bankruptcy,Thank you so much for sharing with us. You are doing fantastic work,Keep up it..
All the Best!
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