When filing for bankruptcy, some people think that it is going to be their ticket to getting rid of all of their financial problems. Chapter 13 bankruptcy can be extremely helpful in getting a fresh start, but unfortunately, people aren't always able to live a debt-free life forever. Some people just aren't good with managing their money and bankruptcy ends up being a temporary Band-Aid on the bigger problem; other people just encounter string after string of bad luck, resulting in the accumulation of even more debt than the first time they filed for bankruptcy.
What happens in these situations? Can someone who has filed for bankruptcy in the past file again successfully?
Yes, people who have filed for bankruptcy before can do so again—but there are rules:
- If you have filed for Chapter 13 bankruptcy in the past, you have to wait two years to do it again.
- If you have previously filed for Chapter 7, 11, or 12 bankruptcy and want to file for Chapter 13 bankruptcy, you have to wait at least four years.
- If you filed for Chapter 7 bankruptcy in the past and want to file again, you have to wait at least eight years.
Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005. While the law was intended to serve several different purposes, one main objective was to prevent suspicious filings by consumers. Congress wanted to make sure that people were not abusing the system by filing for bankruptcy over and over again.
If you've filed for Chapter 13 bankruptcy in Augusta before and are considering it again, or if you would like to file for the first time, call at (706) 872-7117 to contact the Augusta bankruptcy law office of Seymour & Associates, P.C. for a free consultation.