The 2005 bankruptcy amendments attempted to lengthen the period before a bankruptcy filer was eligible for subsequent bankruptcy relief. The exception is Chapter 13: as written, the Code makes a debtor eligible to file another Chapter 13 before the mandatory duration of the first case has run!
Like much of this ill written law, this is probably a drafting mistake, but the statute as written makes one eligible to file another Chapter 13 within two years of the filing of the first Chapter 13.
I always hope that my clients will not need to file bankruptcy ever again, but from the studies on bankruptcy, we know that divorce, job loss and ill health are behind the majority of bankruptcy cases. No amount of planning or good judgment can insulate a family from those possibilities.
So, choosing to file a Chapter 13 case leaves the client with the maximum of bankruptcy options available going forward.
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