Can I File Chapter 13 After Chapter 7? Find Out How Soon
One of the most common questions we get at Attorney Debt Fighters is, “Can I file chapter 13 after chapter 7?” In most cases, the answer to that question is “yes.” However, this decision requires careful planning and a deep consideration of the impact it could have on your credit score.
In this article we’ll take a deep dive into the reasons why someone might need to file chapter 13 after chapter 7, how soon can you file chapter 13 after 7, the process, and common challenges. Need more personalized information?
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Time Frame Between Filing Chapter 7 and Chapter 13
While you can file chapter 13 after chapter 7, there are some timing restrictions you should be aware of before moving forward in the process. Below, we’ll explore the legal waiting period and how to calculate it:
Legal Waiting Period
The short answer to “How soon can you file Chapter 13 after Chapter 7?” is that you’ll need to wait at least four years from the date you filed your Chapter 7 petition before you can file for Chapter 13. Established by the U.S. Bankruptcy Code, this timeline is in place to prevent certain abuses of the bankruptcy system and ensure filers aren’t using it in lieu of making genuine efforts to pay their debts.
Calculating the Waiting Period
The four year waiting period starts from the date you filed your chapter 7 petition, not the date of discharge. Thus, to calculate when you can file your next petition, it’s important to remember to start counting from your original filing date.
If you’re not exactly sure when that was, your bankruptcy attorney can help you determine the date you can file chapter 13 after chapter 7, and even present alternative solutions.
Reasons for Filing Chapter 13 After Chapter 7
There are various circumstances that might lead you to consider a Chapter 13 filing after completing a Chapter 7 bankruptcy. Here are two of the most common scenarios:
Financial Recovery
In many cases, an individual’s financial circumstances are greatly improved after filing chapter 7, but they may still need help managing new or remaining debts. Chapter 13 provides a structured repayment option to tackle these obligations. It can be particularly useful if you’ve regained employment, increased your income since your chapter 7 filing, or are still struggling with certain types of debts (i.e., mortgage arrears, non-dischargeable tax debts, etc.).
Managing New Debts
Suppose you’ve added new debts since receiving a chapter 7 discharge, and you’re struggling to pay them. In this case or similar, chapter 13 can help you reorganize these new obligations – Which can be especially helpful for debts that weren’t included in your chapter 7 filing.
Filing Chapter 13 After Chapter 7: The Process
If you and your bankruptcy attorney have decided that filing chapter 13 after a chapter 7 is the best option, it’s essential to understand the process. Here’s what you need to know:
Preparing to File
Before you can file chapter 13 after chapter 7, it’s absolutely crucial to assess your current financial situation. This includes gathering relevant financial documents, including:
- Recent income statements
- Detailed account of your expenses
- Accurate list of current debts
This is also an excellent time to check your budget to ensure you can handle a 3-5 year repayment plan.
Filing the Petition
The process of filing chapter 13 after chapter 7 is essentially the same as filing an initial chapter 13 filing. This means you’ll need to:
- Wait for four years after filing chapter 7
- Complete the necessary paperwork (i.e., petition, schedule of assets/liabilities, statement of financial affairs, etc.)
- Submit your filing
It is important that any omissions or inaccuracies may delay or even endanger your case. This is why it’s always advisable to consult with experienced bankruptcy attorney to ensure your paperwork is completed correctly and filed on time.
The Repayment Plan
Chapter 13, also known as “the wage earners plan,” typically lasts for 3-5 years. This plan outlines how and when you’ll repay your debts. It’s important to submit a realistic plan that you can maintain throughout the entire repayment period.
Once approved by the courts, you’ll need to be prepared for the financial sacrifices that chapter 13 requires. In order to receive a discharge of qualified debts at the end of your chapter 13 bankruptcy, you’ll need to make every payment, on time – There’s very little wiggle room here.
Challenges and Considerations
While filing Chapter 13 after Chapter 7 can provide significant debt relief, it’s not without its challenges. Here are some important factors to consider before starting this process:
Impact on Credit Score
It’s likely that your credit score was already impacted after filing chapter 7. But filing chapter 13 afterward will incur additional impact. You need to weigh the long term pros and cons to ensure it is the best way.
Also remember that although bankruptcies stay on your credit report for up to 10 years and their impact diminishes over time. With responsible financial management, you can rebuild your credit over time after completing your chapter 13 plan.
Legal and Financial Implications
Deciding whether “can you file chapter 13 after filing chapter 7” isn’t a cut-and-dry decision. Aside from repaying debt obligations, there are many other aspects to consider, including:
- How much it cost to file chapter 13, including attorney fees
- The commitment required to completed a long-term repayment plan
- Certain financial restrictions imposed during bankruptcy
In most cases, this means you’ll need to abide by a very strict budget during the process. However, once you’ve successfully completed the repayment plan, you’ll have a fresh start with your finances – Which is well worth the sacrifice.
Conclusion
So, can you file chapter 13 after you file chapter 7? It’s absolutely possible to file chapter 13 after chapter 7, but whether or not it’s the best option for you requires careful consideration and planning. The Florida bankruptcy lawyers at Attorney Debt Fighters are here to help you navigate the ins and outs of bankruptcy law and even offer alternative debt relief solutions if chapter 13 after 7 isn’t the best option for your circumstances.
Give us a call today to discuss your options and take the first step toward financial recovery and taking back control of your financial future.
