Can I File Chapter 13 After Chapter 7?

The personal bankruptcy process is designed to help those who are struggling financially. There is no limit to the number of times that an individual can file a bankruptcy claim, and some do file multiple times. The U.S. Bankruptcy Code has different Chapters that apply to individuals who wish to claim bankruptcy and each has its own advantages and disadvantages. It is possible to file again under the same chapter or even under a different one, depending on which would be best for your current financial situation. The following article will attempt to answer to question – “Can I file Chapter 13 after Chapter 7?”

Chapter 13 is the process whereby an individual in financial trouble declares bankruptcy with the understanding that at least a portion of all non-dischargeable debts will be repaid over a period of 3-5 years. A trustee is appointed by the court to ensure that the repayment plan is being followed and creditors are receiving what is owed to them. Wage garnishment and harassment from debt collectors will cease and you will only be required to pay a monthly amount based on your income, expenses, and cost of living in your area. Chapter 13 is useful for those who have a lot of debt that is non-dischargeable and/or those who have sufficient disposable income to be able to make monthly payments to their creditors.

Chapter 7 is the traditional notion of claiming bankruptcy which results in the liquidation of property in order to pay off creditors. A trustee is appointed by the court to oversee the process and ensure that all creditors receive a share of the money resulting from the liquidation. Although each state has a list of exempt items, such as: tools of the trade, jewelery, and any items deemed as ‘necessary’, debtors considering filing under Chapter 7 should accept that they will likely lose some of their assets. A bankruptcy of this type is useful for those who have a significant amount of dischargeable debt and few assets, or if there is no equity on the property.

For those who wish to file Chapter 13 after Chapter 7, this can be done anytime afterward; however, no debts will be discharged unless a period of 4 years has passed since the date the previous bankruptcy was filed. For example, it may be required to file for bankruptcy again if someone was unable to keep up the payments on items that were not discharged during the Chapter 7 filing. In this case, if would make more financial sense to develop a plan to pay a smaller amount of money at a more manageable rate over a longer period of time.

The process is fairly simple and if you have just undergone a Chapter 7 filing, it will seem relatively straightforward. Depending on your state, you may have to complete a credit counseling and financial education course a maximum of 60 days prior to filing bankruptcy. During the course you will get help on organizing your documents and creating a repayment plan. When it comes time to file the petition and pay the fee, you will also have to provide the court with information on your income, debt, expenses, and all creditors that are owed money. After that, a trustee will be appointed to review your case, talk to the creditors, and hold the Meeting of Creditors where your repayment plan is discussed with the creditors and any objections are raised. Once the repayment plan is approved by the judge, your bankruptcy is complete and you can start repaying your debts over a period of 3-5 years, as outlined in your plan.

Unfortunately, some people have to file for bankruptcy more than once in their lives. If this is the case for you and you are wondering “Can I file Chapter 13 after Chapter 7, then the answer is ‘Yes’. Just make sure that a minimum of 4 years has passed since the start of the Chapter 7 proceedings, otherwise you will not have your debts discharged.

To see if you qualify for the personal bankruptcy process, consider filling out our free bankruptcy evaluation.