Bankruptcy: One Bite at the Apple?

30 Jan Bankruptcy: One Bite at the Apple?

Bankruptcy is not always a one time event. Unfortunately, despite the best efforts of many past bankruptcy filers, circumstances may come up where they face financial difficulties again.

Few of us could have predicted the economic difficulties of recent years, nor the high amount of unemployment, or drop in real estate values.

Many people think that if they filed a bankruptcy less than (7 or) 8 years ago, there is no help for them if they get into financial difficulty again. That is not true.

The old law required 7 years between Chapter 7 discharges, so many people find information saying they didn’t think they can file for seven years. This is one of the many changes in the bankruptcy laws make in BAPCPA, aka the 2005 New Bankruptcy Law.

Bankruptcy dischargecan only be received every so often, but how often you can get a discharge depends on the type of case filed the first time and what you are trying to discharge, or even if you are trying to discharge a debt.

  • Not all people filebankruptcy to get out of debt. Sometimes, they just need help reorganizing the debts into an affordable repayment plan.

Rachel Foleywrote an article which you can read (here) setting out the time periods and she included a chart showing how long you have to wait to filebetween the various chapters.

  • Even if you are not eligible for a ‘full’ discharge, you may still be helped and choose to file bankruptcy to help you with your debt issues.

For instance, you may not need to get rid of all the debt you owe, but you may be helped in a Chapter 13with a repayment plan that is more affordable than what you are able to work out with your creditors.

Bankruptcy may help someone stop accrual of new fees, late charges, and interest from being added to your debts. The protection of the bankruptcy laws set the rules so you won’t be at the mercy of the creditors as they nickle and dime you to death.

There are many pros and cons about filing but no case is the same as another case. An experienced lawyer needs to look at your case to help decide if filing, or re-filing, is the answer – or is there a better alternative for you outside of bankruptcy.

You won’t know until someone who understands the law looks at your case with correct and updatedknowledgeyou might not have, and gives you the information so that you can decide what the best option for you is.

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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